Print post approved PP 665002/00062 March –May2012$3 WESTERN AUSTRALIA’S INTERNATIONAL RESOURCESDEVELOPMENT MAGAZINE gas industry courses gas industry Cutting-edge WA oiland world the to Taking training (inc GST)

DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 0566 • Fax: +61 8 9222 6151 Email: [email protected] www.dsd.wa.gov.au

INTERNATIONAL OFFICES Europe European Office • 5th floor, The Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 Email: [email protected]

India — Mumbai Western Australian Trade Office 93 Jolly Maker Chambers No 2 The new year presents Western Australia with some tremendous challenges 9th floor, Nariman Point • Mumbai 400 021 • INDIA and opportunities. Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Email: [email protected] Following an economically-volatile 2011, this year may present ongoing hurdles. For Indonesia — Jakarta WA, which is dependent on the resources sector, a close watch will be kept on events Western Australia Trade Office in Europe and China. Wisma Budi Building • floor 5 Suite 504 JI HR Rasuna Said Kav C-6 While world events will have some impact on the WA economy, there’s every Kuningan, Jakarta 12940 • INDONESIA reason to believe the State will continue its steady growth. The petroleum sector is Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 seeing sustained gas demand from Asian countries’, meaning more fields will likely Email: [email protected] be developed. Japan — Tokyo With so many major projects committed to, there will be strong investment and Government of Western Australia, Tokyo Office 13th floor, Fukoku Seimei Building increasing employment opportunities. As reported in this issue, employment in the WA 2-2-2 Uchisaiwai-cho Chiyoda-ku mining and resources sectors has broken the 100,000 barrier. • TOKYO 100-0011 • JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 The State is leading the way when it comes to helping people find employment in the Email: [email protected] sectors, with this issue highlighting three world-leading oil and gas training programs. Japan — Kobe The continued increase in resources projects contributes directly and indirectly to the Western Australian Government Office State’s growth. 6th floor, Golden Sun Building • 4-3-6 Nakayamate-dori Prospect looks at how work programs and millions of dollars spent on major projects Chuo-Ku • Kobe 650-0004 • JAPAN filters through to dozens of local companies and thousands of workers. Tel: +81 78 242 7705 • Fax: +81 78 242 7707 Email: [email protected]

Current developments will benefit the State for up to 50 years. The focus for the Malaysia — Kuala Lumpur Government, through the Departments of State Development and Mines and Western Australian Trade Office Petroleum is on securing the future for generations to come. 4th floor, UBN Tower • 10 Jalan P Ramlee KUALA LUMPUR 50250 • MALAYSIA The Government knows this is an important period in WA history. Now is our chance to Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 increase our productive capacity. We are doing that with major expansions in LNG and Email: [email protected] iron ore, port and rail developments. Middle East — Dubai We’re not about to let these opportunities pass us by. Western Australian Trade Office • 106, Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Email: [email protected]

People’s Republic of China — Shanghai Colin Barnett Western Australian Trade and Investment Promotion PREMIER OF WESTERN AUSTRALIA & MINISTER FOR STATE DEVELOPMENT Room 2208 • CITIC Square 1168 Nanjing Road West Norman Moore SHANGHAI 20004 • PEOPLE’S REPUBLIC OF CHINA MINISTER FOR MINES AND PETROLEUM Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected]

People’s Republic of China — Hangzhou Western Australian Trade and Investment Promotion Hangzhou Representative Office ISSN 1037-4590 Room 1705 • World Trade Office Plaza Zhejiang World Trade Centre Prospect 122 Shuguang Road • Hangzhou 310007 Western Australian Prospect magazine is published quarterly by the PEOPLE’S REPUBLIC OF CHINA Western Australian Government’s Department of Mines and Petroleum (DMP) Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 and Department of State Development (DSD). Email: [email protected] Editorial management: Greg Smith, DSD Communications and Singapore Marketing Division. Tel: (08) 9222 0417 • Fax: (08) 9222 0505 Western Australian Trade and Investment Office Subscriptions: Gerard O’Neill. Tel: (08) 9222 3821 • Email: [email protected] 6 Temasek Boulevard #06-01 Disclaimer Suntec Tower Four • Singapore 038989 Prospect has been compiled in good faith by the Department of Mines and Petroleum (DMP) and Department of State Development (DSD). Opinions Tel: +65 6836 5626 • Fax: +65 6836 5698 expressed in Prospect are those of the authors and do not necessarily represent the views, or have the endorsement of DMP and DSD. DMP and Email: [email protected] DSD has used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. DMP and DSD disclaims any or all liability for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication South Korea — Seoul should make and rely on their own enquiries, research and judgements in making decisions affecting their own or any other persons interest. Western Australian Trade and Investment Office Cover photo: WA’s world-leading resources industry training is epitomised by Challenger Institute of Unit 702 • 7th Floor • Kwanghwamoon Building Technology’s Daniel Hendon (2010 Student of the Year & 2010 Apprentice of the Year) on site 211 Sejongno, Jongno-gu at the Australian the Centre for Energy and Process Training (ACEPT). See story, page 14 Seoul • South Korea 110-730 • KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Scan this QR code to view links to all the department’s publications Email: [email protected] In this issue

05 06 10

11 14 24

05 New lease of life 11 Carbon capture After lying dormant for eight years, the Windimurra vanadium The Department of Mines and Petroleum has sunk the State’s mine has just started production. first data well in the South West Hub Carbon Capture and Storage Project at Harvey. 06 Domestic gas supply 14 WA shows world the way strengthened When it comes to industry training, Western Australia leads Western Australia’s future energy needs have been the way, with three new industry programs ensuring a supply strengthened. Two articles highlight how the State will benefit of skilled workers. from recent developments. 24 Windfall for local companies 10 Ports get the “heave-ho” The economic benefits to local companies from major The State Government is undertaking the biggest reform of resource projects is gaining momentum. the State’s ports in decades.

Department of Mines and Petroleum Department of Mines and Petroleum Department of State Development Department of State Development www.dmp.wa.gov.au www.dsd.wa.gov.au Resources safety reforms gather pace

Mine safety a particular challenge to supervisors, “The next challenge is to use these The Department of Mines and Petroleum trainers and safety and health additional resources productively.” representatives,” Mr Ridge said. (DMP) and the resources industry have The Reform and Development at seen momentous change during 2011. “Employers also face the challenge of Resources Safety initiative, commonly Industry has bounced back from maintaining a stable workforce when termed RADARS, is beginning to the slight shrinkage of employment individuals may be attracted to show results. different rosters or newer camps, statistics in 2010 to record employment One example is the establishment of leading to the unwanted outcome of levels and investment. focus groups tasked with developing high staff turnover.” A number of major expansion projects programs that address “big-ticket” are reaching the production stage, Mr Ridge said such factors can adversely items in the industry’s safety lexicon. influence safety performance. The while new expansions are leaving the “The inspectorate has actively sought mines inspectorate is also subject to drawing board and creating additional input from stakeholders in the similar pressures. employment opportunities. There is no development of new approaches,” reason to believe this trend will change. “During 2011, the safety Mr Ridge said. State Mining Engineer Simon Ridge “This covers issues such as submissions said such unprecedented growth brings regulator was able to for high-voltage installations, working with it significant risks, which must be recruit, train and at heights underground and a diligently managed. graduate 22 new risk-based framework for on-site “These include an influx of less- atmospheric containment monitoring experienced workers, which presents inspectors,” Mr Ridge said. and assessment.”

2 Focus groups are also involved in safety and health of workers. Indirectly, DMP staff will also be able to access drafting guidance for topics as diverse as safety requirements also protect the compliance and other databases exploration drilling safety and the community and help ensure continuity remotely, allowing better use of their role of gendered behaviours in of supply. time and resources. determining safety outcomes The revenue will enable DMP’s Resources (i.e., toughness in mining). Dangerous goods safety Safety Division to fund existing activities, The work of the focus groups is based on as well as expand services through the Work continues to progress amendments industry input and analysis of incidents. recruitment of specialist safety and risk that will reduce the regulatory burden analysts and other safety and health and streamline administrative processes “Such initiatives and the ongoing work of initiatives. associated with dangerous goods the focus groups will ensure a consistent safety legislation. and measured approach to real issues in Current activities conducted by the the mining safety arena,” Mr Ridge said. Petroleum Safety Branch include safety Amendments to the explosives and risk assessments; inspections regulations are expected to be gazetted “Although the department and audits; investigation of accidents; within the coming months, with changes collection and reporting of safety and to the regulations for storage and has just completed phase health statistics; and provision of safety handling of non-explosives anticipated 5 of the RADARS-related and health advice. in 2012. recruitment project, we will The revenue may also be used to The licensing structure for dangerous implement new safety and health goods sites in Western Australia is being continue to seek suitable initiatives. This includes staff increases overhauled. Amendments will include the specialists in the fields of for the current program of enforcement introduction of a cost-recovery regime for work, such as inspections and audits, the regulation of dangerous goods safety. mining, mechanical and while addressing the increasing workload In response to requests from industry, structural engineering to of the Petroleum Safety Branch from there has already been a move from deliver the required level of increased industry activity. three-year terms to annual licensing, as The funds are also vital in ensuring allowed by recent amendments to the regulatory services.” DMP attracts high-calibre staff with the regulations, in preparation for licensing changes. Petroleum safety necessary technical skills, experience and qualifications; within a highly The Petroleum and Geothermal National harmonisation of competitive industry. Energy Safety Levies Act 2011 and the OHS legislation Petroleum and Geothermal Safety Levies The department has also initiated National harmonisation of occupational Regulations 2011 commenced on competency-based training and health and safety legislation is 1 January 2012. development programs for all staff. progressing, with assigned resources in This involves the attainment of the Resources Safety Branch preparing The cost recovery initiative has been diploma-based qualifications recognised for its introduction. introduced to ensure, to the greatest across Australia that are also consistent possible extent, a fair and equitable DMP is preparing a set of drafting with other safety inspectorates. distribution of the cost of administering instructions for the Mines Work Health petroleum and geothermal energy A dedicated team of and Safety (WA) Bill (MWHS Bill). Once safety regulation in WA state experts has been formed finalised, they will be submitted to waters and onshore areas, with to investigate serious Cabinet for approval. minimal administrative burdens incidents, across the Regulations accompanying the MWHS for industry and the regulator. resources industry. Bill are under consideration and will be This will lead to targeted Petroleum is a complex developed further under the National safety initiatives aimed at industry requiring high end Mine Safety Framework (NMSF), by a eliminating the technical safety assessments, newly convened legislation working party, root causes of inspections and audits to chaired by an independent person. avoidable incidents. ensure the WA is committed to implementing Enhanced data management harmonised mining OHS laws, which will and analysis systems will allow be consistent or uniform with mining OHS decisions about compliance and laws in Queensland and New education work programs to South Wales. This will provide a be based on evidence and seamless mining OHS system across risk profiles. the three states. It is anticipated that Western Australia will implement harmonised OHS legislation from 31 December 2012.

3 Cutting-edge database tops off department’s year

Minister for Mines and Petroleum, Norman Moore launching Aster Map.

The Department of Mines and In a world-first, DMP, in collaboration • Facilitating approvals for projects that Petroleum (DMP) continues to with the Commonwealth Scientific achieved Final Investment Decision play an important role in attracting and Industrial Research Organisation (FID) during 2011 including two LNG (CSIRO), released ASTER (Advanced private investment in responsible developments; Wheatstone and Spaceborne Thermal Emission and Prelude, as well as Pyrenees Oil, and resources exploration and Reflection) satellite images covering the gas developments - NWS Western development. DMP is the State’s entire State. Flank, Macedon and Halyard; lead agency in providing geoscientific These images provide exploration information, along with the • Facilitated approvals for projects geologists with a new way of searching where FID was programmed, Ichthys management of equitable and for mineral deposits, by providing basic and Finucane; and secure titles systems for the information about the dominant rock mining, petroleum and and soil-forming mineral components. • Several pipeline licence approvals to support this activity. geothermal industries. This ASTER project formed part of the Exploration Incentive Scheme, funded by Balancing act There were many highlights in 2011, Royalties for Regions. For continued economic prosperity for from DMP’s award-winning software the State, it is paramount to ensure and online systems, enhancements New mineral and development projects there is a healthy balance between to approvals processes, new policies environmental responsibility and to protect the environment and DMP continued to support the development resource development. people and progress on the State’s of new mineral resources and innovative technology projects in 2011. Ensuring the State is adequately first on-shore carbon capture and protected upon closure or storage project. There have been significant efforts by relinquishment of a mine has been industry and government to progress ensured through the new guidelines for Innovation in software and uranium projects. Investment in mine closure released in 2011. online systems uranium exploration in 2010/11 reached a record $100.7 million, which represents Planning for mine closure must now be DMP makes freely available state-of-the- an increase of 76 per cent from the considered in the initial planning phase art computer software to improve public previous year. of the project. This allows companies to access to geoscientific information, better plan for and manage mine closure delivered by the Geological Survey DMP is the lead agency in facilitating and minimize unexpected problems Western Australia (GSWA). the introduction of uranium, bringing when a mine is closed, resulting in together expertise of State and Federal 2011 saw the public launch of better outcomes for the environment and Government agencies to ensure the GeoMap.WA, which is a DMP developed company budgets. award-winning desktop map-viewer protection of the environment. The application using Geographical production of this high-demand resource A review of the environmental bonds Information System (GIS) technology. will bring significant social and system was undertaken in 2011, economic benefits to the local with extensive public consultation to GSWA has been gathering and community and the nation. ensure the new policy was adequate disseminating important regional to meet industry, government and the geoscientific information for over Oil and gas project developments community’s needs. An announcement 100 years. The new software makes Throughout 2011 DMP contributed to on the outcome of the consultation is the valuable data more accessible to achieving high levels of exploration and expected in 2012. the community. development. During 2010/11, $2.4 billion One of DMP’s online database systems was invested in petroleum exploration in With another year now in the rear- was rated number one in the world the State, representing 73% of national view mirror, DMP looks forward to the by the 2011 Fraser Institute’s Global petroleum expenditure. challenges and achievements ahead in 2012: to ensure that Western Australia is Petroleum Survey. Western Australian Project developments have included: Petroleum and Geothermal Information the destination of choice for responsible Management System (WAPMIS) won the • Approvals to support projects resources exploration and development, prestigious accolade against 135 other already sanctioned, including Gorgon for the long-term benefit of the Western investment destinations. and Devil Creek; Australian community. 4 Vanadium mine’s Minister for Mines and Petroleum, Norman Moore launching Aster Map. new lease of life

IT’S one of the State’s newest mines ... These figures should see the mine, Atlantic also identified a haematite sort of. which has a life of 28 years, producing by-product revenue stream and has seven per cent of the world’s completed arrangements for an iron The Windimurra vanadium mine near vanadium. (Production is dominated by ore logistics chain. This included site Mount Magnet, 600km north east of China, South Africa and Russia). preparations for iron ore screening, Perth, has just produced its first loading and transport and business output in eight years. “We are focused on approvals. A loading trial using Discovered in the 1960s and built in containers was successfully trialled 1999 at a cost of more than production ramp-up at Geraldton port in December 2011. $200 million, more than 13, 000 tonnes from current opening Subject to customer confirmation, the of high-quality vanadium pentoxide first shipment from Geraldton Port is was produced at Windimurra. The levels towards production anticipated in the first quarter of 2012. mine was closed in 2002 when capacity over the next 15 vanadium prices fell as low as $US7.73/kg and escalating operating months and I look forward costs put the project economics on to reporting on our shaky ground. progress,” said Atlantic’s Windimurra Vanadium subsequently • Vanadium is used as an alloy for tried to restart the operation but had to managing director call in administrators in 2009 after an Michael Minosora. steel (85 per cent of use) and in $80 million cost blowout, according to smaller amounts for titanium. The company will be undertaking news reports. Example: the Beijing Olympic $14 million worth of modifications A November 2009 agreement between to the milling and benefication Stadium used 45,000 tonnes of Mineral Resources and the receiver components this year, but a steel. Wembley Stadium used and managers of Midwest Vanadium workaround will have minimal impact 23,000 tonnes. Pty Ltd resuscitated the project, but on the mine’s aim of being at 65 per Mineral resources stepped aside and cent capacity. Atlantic Ltd acquired 100 per cent of • World resources of vanadium Windimurra Vanadium also has a the project in late 2010. exceed 57 million tonnes. 15-year gas transportation contract The company engaged specialist in place, with gas the key fuel for Vanadium occurs in deposits engineers to assist in the production the mine – something unique in the of phosphate rock, titaniferous ramp-up to improve the performance vanadium industry. The gas will be magnetite, and uraniferous of the crushing, milling and used to fire the existing rotary kiln and sandstone and siltstone, in which beneficiation plant. for the power station. it constitutes less than 2% of the The mine has a production capacity Roasting the ore concentrate with host rock. Significant amounts of 6,300 tonnes of contained natural gas yields a higher-purity vanadium per annum, up from a vanadium product than is produced by are also present in bauxite and forecast of 5,700 tonnes, according competitors, who use pulverised coal. carbon-bearing materials, such to the company. as coal, crude oil, oil shale, and Demand is being driven by China, tar sands (Source: US Geological which accounts for nearly 40 per cent of world steel production and is Survey, 2012). increasing its demand for steel grades that use vanadium.

5 Domestic gas supply strengthened

Western Australia’s future energy The supply agreements will be activated needs have been strenghtened through to coincide with Verve Energy and contracts with proponents of the Gorgon Synergy’s gas supply arrangements gas project. expiring in or around 2015-16. The agreements will deliver substantial “These contracts are of strategic gas supplies to WA, which is more importance to the State and provide dependent on gas than any other State. a firm foundation for Verve’s and Gas represents 56 per cent of the Synergy’s gas portfolios, both of which primary energy fuel source in Western are expected to grow significantly in Australia, which is significantly more the future,” Mr Barnett said. “They than in the other States and Territories, provide supply tenure that will deliver where gas averages just over 20 per energy security for decades.” cent of the energy mix. Verve Energy and Synergy have “These agreements provide long-term entered into contracts for a combined and reliable domestic energy supply, 125 terajoules per day, for 20 years which will enable us to maintain commencing in 2015. a strong and vibrant economy in Mr Barnett said the announcement conjunction with an additional stream of of the supply agreements was timely, energy security,” said the Premier and as the focus on major projects such Minister for State Development as Gorgon delivering benefits to the Colin Barnett. community was always a priority for “Energy security is vital to our State’s the government. ongoing growth and development, and the Government is ensuring it is doing everything possible to provide West “With the State’s vast Australians with a secure, reliable and supply of natural gas, sustainable energy future.” WA has prospered, with both domestic gas use and exports contributing to our economic success,” Mr Barnett said.

“While these are significant agreements vital to the reliability and security of domestic energy supply, the Government acknowledges there is still more to be done to ensure our growing demand is catered for.

Devil Creek Domestic Gas Plant.

6 © Apache Energy

Apache production technician Wayne Sorensen monitors the first official flow of domestic gas from Devil Creek, witnessed by Premier Colin Barnett (second from left), the US Ambassador Jeffrey Bleich (left), WA/NT Director of Santos John Anderson (rear) and Apache Managing Director Tom Maher (right). Devil Creek boosts State’s gas supply

New investment in domestic gas “In addition, future development of “This project will provide natural gas to production will be increasingly important magnetite iron ore resources will create the Sino Iron project,” he said. “It is the for Western Australia’s economic future, significant new energy requirements.” first, large-scale project to transform Premier and State Development Minister low-grade magnetite iron ore into an Colin Barnett said as he opened the Mr Barnett said the State Government export product.” Devil Creek Gas Plant and Hub, 45 km was committed to expanding domestic south west of Dampier. gas supply, both by requiring that 15 per cent of natural gas processed onshore “As WA’s third domestic was reserved for domestic use, and FACT FILE by supporting exploration and • Devil Creek Project includes an gas plant, and the first associated activities. offshore wellhead platform in the new facility built in more Reindeer field, a 105 km pipeline to Mr Barnett congratulated the operator, shore and a gas plant. than 15 years, Devil Creek Apache Energy, and its joint venture partner Santos Ltd for their ongoing • The project includes two trains with has increased the State’s commitment to WA. combined production capacity of 220 terajoules of gas per day (tj/d). domestic gas production “The Devil Creek project is a $1.1billion WA’s current domestic gas production capacity by 20 per cent,” investment project and Apache capacity is about 1,000 tj/d. Mr Barnett said. estimates Australian content accounts • The project will also produce an for about 60 per cent of this,” he said. estimated 1,000 barrels per day “By providing an additional, independent of condensate, to be processed as “This is Apache’s second domestic gas supply of gas, the Devil Creek plant will transport fuel at BP Refinery, Kwinana. make a significant contribution to our plant in WA, and both partners are also • The project has an expected life of energy security. involved in many of the other oil, LNG and natural gas projects currently 20-30 years. “Natural gas is critical to the State, as underway that will see production • Devil Creek complements existing feedstock for industry, for household accelerate during the next decade.” domestic gas production at Dampier heating and cooking and as a major (North West Shelf Venture operated The opening of the new plant was akin to energy source for almost 50 per cent of by Woodside), Varanus Island (also electricity production. a double celebration for Apache, which operated by Apache). has operated in WA for 20 years. “With WA’s population growing • Future domestic gas plants include strongly, and its mineral production and Mr Barnett said the opening of Devil Macedon (operated by BHPB) and processing industries expanding, demand Creek also marked a milestone in WA’s part of the Gorgon and Wheatstone for natural gas is continuing to increase. emerging magnetite iron ore market. projects (operated by Chevron). 7 (Mtpa) is expected to double within the next decade. The estate is appropriately zoned and buffered for resource processing projects, serviced with a natural gas pipeline and already has some road access. While Port Hedland is largely an iron ore export port, its hinterland produces other minerals including: salt, manganese, copper and chromite. More than 2,200ha is potentially available for heavy industry.

The Anketell Heavy Industry Area: Kemerton Industrial Park. Planning is underway for a heavy industrial area, initially covering 568ha, to be developed close to the proposed new 350Mtpa iron ore port. The site, Industrial land which is close to the existing Dampier port, and existing electricity, water and gas supplies, could potentially be in the “fast lane” expanded to 1000ha in future. The Ashburton North Strategic Industrial Area: Structure planning is underway for the area which is already The rapid expansion of Western “The aim is to significantly reduce risks the location for Chevron’s $29 billion Australia’s mineral and energy and lead times, for new major projects, Wheatstone LNG Project and BHP production is creating significant such as resources processing, advanced Billiton’s Macedon Natural Gas plant. opportunities for new investment in manufacturing and chemicals production. The estate, which could accommodate major industrial projects. another full-scale LNG plant, will be “Structure planning for each industrial developed for hydrocarbon-based These include new export industries area will identify potential heavy industry processing. Hydrocarbon industries based on the State’s diverse resources sites, infrastructure corridors and which could possibly be accommodated and other types of industry producing provision for support industries, as well within the Estate include ammonia, inputs to meet the resources sector’s any constraints on development.” ammonium nitrate, urea and gas-to- growing demands. “It includes undertaking engineering liquids production facilities. The initial To help attract and secure this new and surveying work, including soil and planning focuses on approximately investment the Western Australian hydrology investigations, identifying 1,500ha of heavy industrial area Government is currently developing and resolving land interest and access within the 8,000ha available for more than 7,483 hectares of “project- issues, and preparing environmental potential development. ready land” for heavy industry, at five and heritage management plans Two other HUILS projects are located key locations near existing, or planned to meet State and Federal further south. resources export ports. approvals requirements. Oakajee Industrial Estate: Located The Department of State Development “This will allow future proponents 23km from the City of Greater Geraldton, is co-ordinating the work of a range to focus on obtaining approvals the regional centre for the State’s Mid- of agencies to deliver the State for their individual project, instead West Region, this industrial estate is part Government‘s Heavy Use Industrial of having to undertake additional of a multi-billion dollar project to develop Lands Strategy. preliminary approvals.” a deepwater port, and rail linkages Christine Ginbey, the department’s The department works with relevant to open up a major new iron ore and Director, Strategic Industrial Lands, local governments and Port Authorities mineral province. The Western Australian says the Strategy will ensure sufficient, to ensure consistent and connected Planning Commission recently approved suitable land is available for heavy planning strategies. a Structure Plan that provides for a industry in Western Australia. 1,000ha Strategic Industry Area, 196ha Other organisations contributing to General Industry Area, 1,000ha Port Area “These will be buffered the success of the Strategy include and a Buffer in excess of 4,000ha. LandCorp, the State Government’s land industrial areas to and property developer; the Department The Kemerton Industrial Park: This accommodate multiple of Transport; planning and environmental 7,500 ha estate near the City of Bunbury agencies; and energy and water utilities. in the State’s South West, was originally projects, with good access established in 1985 and is already the Ms Ginbey says under the Heavy Use base for a diversity of industries including Industrial Land Strategy three industrial to transport and export mineral and silica sands processing, areas are being developed in the State’s infrastructure, and, where chemicals, gases and electricity mineral powerhouse, the Pilbara: possible, to services such generation. Structure planning and an The Boodarie Industrial Estate: The environmental approvals process are as gas, power and water estate is within a few kilometres of the underway to identify optimal future world’s largest bulk cargo port at Port development of the area, including supplies and waste water Hedland, whose current throughput of 2,019ha potentially available for disposal,” Ms Ginbey says. more than 200 million tonnes per annum heavy industry. 8 © Minara Resources Limited Mining employment in WA continues to grow

Total mining employment in Western “In particular, there is “Obviously there are expansion projects Australia is close to reaching 100,000 in the South West and the burgeoning and is growing strongly. a huge construction in iron ore industry in the Mid West is proving a great growth area as well.” According to the ABS (latest data relation to iron ore projects available), the mining sector had and some of the major gas Mr Callachor says a survey by the 101,000 full time employees in WA in projects in the Pilbara, so Chamber predicts a workforce of November 2011, which represented a 120,000 by 2013. The International 18% increase year on year. certainly the engineering Business Times says WA mining magnate Gina Rinehart, the country’s The figures follows the release of data and electrical disciplines richest woman, estimated the shortage showing a rise in mining exploration will be a focus for the to be 150,000 positions. spending and a continuing strong oil industry to grow,” and gas sector. The Times’ web site also highlighted Mr Callachor said. Manpower Employment’s Outlook Department of Mines and Petroleum Survey, which found 32 per cent of figures (which use a different formula employers in Australia’s mining and for calculating employment) shows Where the jobs are: construction sectors said they plan to 92,565 people employed in the hire more people in 2012. minerals and petroleum industries. The department says this is an 8.7 per cent 15% increase over 2010, when the figure was 85,163. 2% 33% Iron Ore 33% WA Chamber of Minerals and Energy’s director Damian Callachor says the 10% Alumina 12% challenge for the state will be in sustaining growth. Gold 20% 8% He says Western Australia still Petroleum 8% needs more engineers and Nickel 10% electrical contractors. 12% 20% Heavy Min Sands 2% Other 15%

Minerals and Petroleum Employment 2010-11 Source: DMP 2011

9 © Dampier Port Authority

Dampier Port, which will become part of the the Kimberley Ports Authority. Ports reforms announced

The State Government will undertake “Since 2000, the value of WA’s There will be extensive consultation with the biggest reform of the State’s ports in merchandise exports has risen by more port customers and industry, with the decades, to ensure the wealth generated than 300 per cent - from $25.4 billion State Government expecting to announce to $112.2 billion - and our share of by increasing commodity exports the first regional port authority in 2014. merchandise exports increased from deliver greater benefits to the Western 26 per cent to 46 per cent of the Amendments to legislation to enable the Australian community. nation’s total. phased consolidation would be drafted this year and presented to State Parliament Under the plan, seven of the State’s eight “There are currently 21 ports; and new in 2013, with a staged implementation to port authorities will be consolidated into ports will be constructed at Barrow commence from 2014. four regional port authorities to improve Island’s Gorgon project, Wheatstone, efficiency and reduce red tape. Oakajee, James Price Point and Anketell. It clearly makes sense to consolidate all Premier and State Development Minister these existing and future ports into an Colin Barnett said the plan was developed appropriately-managed regional The ports after a comprehensive review of the port structure. • Kimberley Ports Authority governance of WA ports undertaken by “Our ports facilitate the State’s wealth comprising the ports of Broome, the Liberal-National Government. and, by implementing a more efficient Derby, Wyndham, Cockatoo framework, the Liberal-National Island, Koolan Island and the Government will ensure that more of the “The current port proposed port at James wealth being generated is returned to Price Point. governance model has the community through improved health, education, police and other services.” served the State well • Pilbara Ports Authority – since it was introduced The 13 smaller ports currently controlled Port Hedland and Dampier, by the Department of Transport would proposed new ports at Anketell by the Court Coalition come under the jurisdiction of the and Ashburton North; and ports regional port authorities, with Fremantle at Cape Preston, Port Walcott, government in 1995, but to remain a stand-alone port authority. Varanus Island, Barrow Island, the growing demand for WA No decision has been made on Airlie Island, Thevenard Island commodities meant it was which regional port authority will be and Onslow. formed first. The timing and extent of time to review this model to amalgamations will depend on current • Mid-West Ports Authority – ensure we provide our ports contracts and potential impact on port Geraldton, proposed new port of customers and industry. Oakajee and ports at Cape Cuvier with the most effective Five future ports planned for the and Useless Loop. framework for the future,” Kimberley, Pilbara and Mid-West will also come under the control of the four • Southern Ports Authority – Mr Barnett said. regional port authorities. Bunbury, Albany and Esperance. 10 State moves to capture and store carbon

The South West Hub Carbon Capture and Storage (CCS) Project is a leading initiative in the attempt to reduce carbon dioxide emissions in our State. The project, being managed by the Department of Mines and Petroleum (DMP), has progressed to the drilling of the first data well, known as a stratigraphic well. CCS or geosequestration involves capturing carbon dioxide (CO2) emissions from industrial sources before they are released into the atmosphere.

The captured CO2 is then liquefied, transported by pipeline and pumped deep below the ground for permanent storage. The purpose of the well is to gather more information about the suitability of the geological formations in the area as a site for geosequestration. Other important data will be revealed from the well drilling, including geothermal gradients (rate of temperature change with depth), hydrocarbon formation and water resources. This data will provide a more complete picture of the State’s geology. The area of interest is the Lesueur Sandstone deep beneath the Swan Coastal Plain, located near thesouth west town of Harvey, approximately 150 km from Perth. The location was determined from previous desktop studies and seismic analysis, suggesting the area may hold The Century Rig 7 at Harvey 1 Well. a suitable CO2 reservoir (sandstone) and trapping mechanism (shale layer). In order to improve knowledge of the Lesueur Sandstone. This will determine if The core will then be stored at the GSWA geology within the project area, a 2D the formation can trap the CO2, how much Carlisle core library as a permanent seismic survey was carried out in the it will hold and at what rate the liquid can record. Cores at the library are stored for Harvey and Waroona Shires during be pumped down. use by the public, students or resource March 2011. The precise site of the The Harvey 1 Well will take approximately companies to investigate different 3,000 meter deep well (Harvey 1 Well) 250 metres of core from four different strata’s from areas around the State. was determined following analysis of depths, to gain an understanding of the seismic survey results. The South West Hub Project will be geology at different depths and potential Australia’s first on-shore carbon Planning, designing and procuring CO injection intervals. 2 capture and storage project and is a joint services and equipment for the well has The core is drilled and captured within industry and government partnership been on-going for the past 12 months. nine metre lengths of aluminium casing. between DMP, Verve Energy, Griffin As no wells currently exist in the area of To maintain the integrity of the sample Energy, Wesfarmers Premier Coal, Alcoa interest, collection of data is important the core is not viewed directly on site Australia and Perdaman Chemicals to acquire a sound understanding of the but transported to Perth and cut into one and Fertilisers. Lesueur Sandstone and the overlying metre lengths. Eneabba Formation. The South West Hub Project will The core will be inspected by geologists complement the Gorgon CCS Project Core samples (cylindrical sections and scientists from DMP’s Geological on Barrow Island. As a result of these of earth) taken from the well will be Survey of Western Australia (GSWA) projects, Western Australia is analysed to determine the presence and the Commonwealth Scientific building world-leading capability of a lower shale unit in the Eneabba and Industrial Research Organisation in the area of CCS. Formation, the sealing capacity of the (CSIRO). Small sub-samples will then be shale if present and the injectibility of the taken for further laboratory analysis. 11 Increase in exploration approvals and online lodgement

The Department of Mines and Petroleum Online PoW applications were first In view of this trend and the acceptance has experienced strong growth in the introduced in mid-2010. In the first by industry, as of 31 May 2012, the number of exploration applications. quarter following their introduction less department will only accept online than 20 per cent of PoW applications applications for PoWs. In the past three years (2009-2011) received were submitted online. the number of mineral exploration The department will continue to applications for gold and uranium alone Last quarter, almost 70 per cent of PoW expand online applications into other increased from 1,698 to 2,691. applications were submitted online. areas in 2012. Feedback from industry regarding online In 2011, DMP finalised more than “The next approvals document to go ‘high applications has been positive. 9,000 applications. This included tech’ will be the Petroleum Environmental 4,443 mineral tenure applications, Industry has embraced the changes, Proposals (PEP),” said Ms Mulligan. 285 petroleum and geothermal tenure which allow for electronic lodgement “Until this latest online development, applications, and 3,174 environmental of mining and petroleum paperwork, PEP applications were received by the applications. DMP also finalised 1,104 including Petroleum Environmental department in hardcopy only. Given the pre-2009 mining tenure applications. Proposals PoW applications. remoteness of some parts of Western The increase reflects the high levels of “Since the introduction of online Australia, this lodgement method was no mineral exploration and mining activity lodgement, industry has quickly adopted longer efficient. across Western Australia. the new technology,” said General Manager Environment Business The department has published quarterly Development Kaye Mulligan. approvals performance reports since January 2009. The reports provide information about the number of applications received, 10000 Geothermal Tenure (2011 - 8) Petroleum Tenure (2011 - 277) the percentage of applications assessed 9000 Petroleum Environment (2011 - 304) within target timelines and an analysis of Mining Environment (2011 - 2870) 8000 approval performance. Pre 2009 Mining Tenure (2011 - 1104) 7000 Mining Tenure post 1/1/2009 (2011 - 4443) This enables the department to monitor performance timelines, divisional 6000 workloads, identify emerging trends 5000

and proactively allocate resources Number of applications 4000 where required. 3000 A significant development in the approvals 2000 area has been the continued progress regarding online applications, 1000 particularly exploration Programme 0 2009 2010 2011 of Work (PoW) applications. Applications finalised by DMP

12 Golden Geckos a chance to stand out

The Golden Gecko Awards for “The Golden Geckos are an outstanding Environmental Excellence gives opportunity to recognise those leading “Online lodgement will improve Western Australia’s resources sector an the industry in innovative environmental efficiencies in the assessment process opportunity to showcase its innovative practices. I encourage all eligible by avoiding information ‘double handling’, environmental strategies. Nominations State mining and petroleum companies accelerating approvals and enabling staff for 2012 close on Thursday 5 April 2012. to apply.” to be focused on other aspects “The Golden Gecko Awards recognise In 2011, two Certificates of Merit were of operation.” innovation, leadership and performance also awarded to Compass Groups Companies need to set up an account to of environmental management in our (Australia) and ATCO Gas Australia, access the online submission portal. State’s resources sector,” said Mines and formerly WA Gas Networks, supported by KD1. When announcing the introduction of Petroleum Minister Norman Moore. online applications last year, Mines The 2011 awards attracted an Compass Groups was recognised for its and Petroleum Minister Norman Moore outstanding pool of nominees. The award unique approach to remote site catering. said the changes made transacting with was presented to a joint WorleyParson Compass uses central production business more efficient and convenient and Port Hedland Port Authority facilities that minimise waste through the for resource companies operating in submission, for their world-first composting, livestock feed production Western Australia. sedimentation scanning solution. and bulk food preparation, which reduce energy needs and emissions. “The ability for companies This innovative technology allowed to use this system will real-time environmental monitoring ATCO Gas Australia and KD1 completed of dredging impacts, which delivered a new gas pipeline with a high level provide clear benefits previously unknown facts about the of environmental conservation and process of sedimentation. management. The unique approach for industry and the resulted in 40 per cent less clearing and department,” The Golden Gecko Awards play no loss of black cockatoo habitat trees. an important role in inspiring Mr Moore said. innovative thinking, which may lead “Each project has shown a strong commitment to protecting and enhancing The department’s shift to online to advancements in environmental the environment. I encourage industry to applications has improved assessment excellence. The unique environs of continue to think innovatively, to improve timelines, streamlined the application the State present unique challenges process and ensured the quality of the to resource sector environmental environmental management outcomes for the State,” said Minister Moore. information supplied by proponents in specialists. Often the solution to such applications is complete. a challenge is a new or improved “It is great to see companies going “This is a significant step in the approvals environmental practice. above and beyond what is expected by regulators to ensure responsible reform process and is another example “Awards such as these encourage development in our biggest sector. I look of the State Government’s ongoing efforts government and industry to work forward to seeing the 2012 entrants.” to make WA one of the world’s most together towards a shared goal of attractive destinations for investment in responsible resource development for Entries must be submitted online at the resources sector,” Mr Moore said. the benefit of all West Australians,” said www.dmp.wa.gov.au/goldengecko before Minister Moore. 4pm on Thursday 5 April 2012. 13 Students in the bridge simulator conducting rig moving operations. DP Instructor showing student the Kongsberg K-Pos advanced trainer. WA leads world oil and gas training

Western Australia’s oil and gas industries currently employ almost 7,000 people, but investment in new LNG facilities worth more than $73 billion is underway and production is predicted to treble during the next decade. The strongly-growing petroleum sector continues to demand skilled labour and expertise for a wide spectrum of production and processing operations. Also, growing interest in onshore shale gas and oil exploration and the potential for processing could produce a further boost in demand for skilled labour and expertise. LNG production is expanding elsewhere in Australia and in the Indian Pacific region, adding to the demand for skilled staff and quality training. In response, major private and public investment in new facilities, advanced equipment and simulation technology, is ensuring the State offers world-class skills development and training. Prospect looks at three facilities in Perth which are providing cutting-edge training to the industry.

Growing demand for with offshore platforms creates a “This is an opportunity to improve industry operators wide range of ocean conditions. (The understanding between the ship and the In early December 2011, the Norwegian simulation is realistic. To this writer the rig about how each crew operates,” Prime Minister visited Perth, to open the bridge deck appeared to be rolling with Mr Knight says. world’s largest offshore simulator for the waves). “As a captain of an anchor-handling marine specialist company, The bridges are integrated fully with an ship I found that communications Farstad Shipping. engine room and a deck simulator, so breakdowns were the most common The company will use its new $20 million whole 10 to 12 member crews can learn cause of problems in these operations.” facility to train crew for vessels servicing to work together more efficiently. and supplying oil and gas projects, both The Centre is also accredited to offer the in Western Australia’s Carnarvon and “Our emphasis is on Nautical Institute Dynamic Positioning Browse basin and elsewhere in Australia teamwork and the simulator training scheme. and the Indian Pacific region. allows us to throw up some Mr Knight says since October 2011, Jeff Knight, General Manager of the Farstad has trained 70 crew members Farstad Offshore Simulation Centre, says challenges, from rough have at the centre. Farstad Shipping (Indian Pacific) operates conditions, to breakdowns in “The Centre aims to become centre for 28 ships servicing offshore oil and gas fields and employs about 660 crew the engine room, for the crew knowledge sharing across the industry,” members across in Australasian region. to overcome,” Mr Knight says. he said. “Our emphasis is on efficiency, safety He says almost half of the During exercises crew members are company’s fleet operates in Western fitted with a microphones and recorded and skills. The simulation can be used Australian waters. on CCTV, so the debrief allows them to to train crew members, from new employees to experienced masters. “Offshore accounts for about 60 per review and assess their performance, cent of Australian marine activity, and individually and as a team. “We plan to provide training for up to Farstad represents about 40 per cent The Centre also includes simulators for an 600 students this year. About 400 of of that, so we are a fairly significant offshore oil rig crane, anchor winch and these will be Farstad employees, but presence,” Mr Knight says. decks that would enable Farstad crews to other operators will be able to use the The company’s facility, at Bibra Lake, train alongside offshore oil rig crew. facility for developing the skills of their rig-based, or ship crews.” south of Perth, features two full-scale Together they could undertake cargo vessel bridges, each surrounded by a transfers and the more complex task The facility will also offer programs to 15m diameter projection screen dome. of moving a rig, during which Anchor introduce students from educational and A highly-realistic ocean simulation, Handling ships raise the rig’s 8- 12 training organisations to the offshore complete with foredeck and populated anchors, then tow it to a new position. maritime industry. 14 Real-life, real-time crisis training Honeywell, which also uses ACEPT to and has recently acquired a $1.6 million, train its technicians. four-metre high, glass binary distillation While efficient marine operations remain column that demonstrates the principle vital to petroleum exploration and Other students gain practical of fractional distillation. production, demand for skilled process experience in areas such as mechanical operators is set to grow dramatically. fitting, maintenance and electrical “Our industry management board instrumentation, with a full-scale plant is telling us very clearly that more Australia’s leading provider of process operator and plant maintenance as their training ground. operators are needed,” Mr Guppy says. training, the Australian Centre for Mr Guppy estimates the plant Energy and Process Training (ACEPT), represents a $25 million investment, “We provided training to is close to commissioning a 3D including equipment purchased and about 800 students in 2011. animated model of its full-scale oil built by the centre and components DP Instructor showing student the Kongsberg K-Pos advanced trainer. processing plant. donated by industry. Student contact hours funded This will allow trainees located offshore, by the State Government “At our plant, trainees are interstate or overseas to familiarise increased by 45 per cent themselves with the plant. able to practice start up and on the previous year, and Greg Guppy, Director of Training shutdown, exercises that Services at ACEPT says the centre is we expect participation to would be impractical and constantly developing its technology and continue growing.” who said. services to meet the sector’s growing costly for a commercial, demand for employees with “Our students include some straight industry-recognised qualifications. 24-hour processing from school, older people seeking He says trainees learn to use a fully- operation,” he says. a change of career and people with substantial experience in the industry equipped control room to operate the “It also allows our staff to engineer who want to upgrade their skills, or centre’s processing plant and recover challenges for trainees. oil from a mixture of fuel, water obtain formal qualifications.” “This is the only place in Australia and impurities. “A newcomer to the industry would that can create a real-life, real-time Before operating the live equipment, undertake an 8-10 week course, while crisis situation.” trainees learn to use a process control others with experience, may be able to system that is identical in operation As well as the processing plant, the complete their training in four to to the plant, developed for ACEPT by facility includes gas dehydration plant five weeks. Continued page 16

Chilean scholarship students (L-R), Ruben Tellez, Eduardo Garcia and Boris Perez training at Challenger’s ACEPT facility in Munster.

© Challenger Institute of Technology 15 From previous page “A small, but growing, number of to give engineers, newly recruited from He said to meet the growing demand for overseas students are enrolling at university, hands on introduction to training, ACEPT, which already operates ACEPT to acquire process operator processing plant operations.” for 49 weeks of the year, is this year skills to work in their own countries. preparing to run two shifts. Last year we trained students from Mr Guppy said that while the centre was The development of a 3D animation of Chile, India, Italy and the UK. originally established to service the oil the plant will enable further “We also provide training to secondary and gas sector, the State’s mining and extension of its capacity to provide students undertaking vocational and minerals processing industries have high-quality training. educational training courses. recognised that the skills sets “As well as exactly replicating the “Recently, refinery and processing plant developed at ACEPT apply equally plant’s equipment and layout, the employers have begun using the centre well to their operations. animation allows users to “look inside” individual components and see what is happening, or get a close up of valves and pumps,” Mr Guppy said. “Where students who live, or work, remotely are not able to take the time required for a full training course, we will provide training discs that include the animation and exercises.“ They will be able to familiarise themselves with the plant and then come to ACEPT to complete their training in a much shorter time. “As high speed broadband comes more available we will also be able to offer real time training using the animation.”

© Challenger Institute of Technology ACEPT, based at Western Australia’s Australian Marine Complex, a major centre of offshore, subsea and marine Students and advanced skills lecturer Seamus Clifford on the processing plant industry and technology, is part of at Challenger Institute of Technology’s Australian Centre for Energy and the Western Australian Government’s Process Training (ACEPT). Challenger Institute of Technology.

$10m Perth complex a regional hub General Electric’s newly-opened $100 million Oil & Gas technology and learning complex will support the development of local service and maintenance skills for upstream oil and gas processing equipment. The complex, at Jandakot, also in Perth’s southern suburbs, is both the company’s first Australian service centre for upstream oil and gas operations, and GE’s Australian regional training hub (see Prospect June -August 2011, p8-9). The complex includes a service centre with advanced workshops equipped to commission and service key components of LNG processing trains, such as turbines and compressors, as well as equipment for subsea production, drilling and mining. © General Electric The complex also includes a $10 million technical centre of learning Western Australia’s Minister for Mines and Petroleum Norman Moore (right) joins General Electric Oil and Gas President and CEO Dan Heintzelman to officially open and development, that GE will use Stage 1 of the GE Oil and Gas facility at Jandakot. as the regional training centre for its own staff, as well as a wide range of skills development and training for the petroleum and related services sector. has funding and support from the This initiative will see the learning centre Australian Federal Government, and is provide industry-recognised training in GE Energy has joined with petroleum expected offer more than 4,000 training areas such as electronics and equipment companies and training organisations, days in 2012. testing and maintenance and specialised including ACEPT, in a Community of and boilermaking and welding. Technical Best Practice initiative, which

16 Groundbreaking starts Wheatstone project

© Chevron

Premier Colin Barnett (left) and Roy Krzywosinski, Managing Director, Chevron Australia, do the honours at the Wheatstone groundbreaking.

Premier and State Development project. This helps ensure a safe, Wheatstone is the second major Minister Colin Barnett hailed the start secure and reliable supply of gas to new LNG processing site to begin of site works for Chevron’s $29 billion meet the State’s energy requirements construction in the Pilbara since the Wheatstone LNG project as an exciting into the future.” Liberal-National Government came to milestone for Western Australia. Construction of the project would take power in 2008. Wheatstone and Gorgon Mr Barnett attended a groundbreaking about five years, with first gas planned combined account for $72 billion worth ceremony on the State Government’s for 2016. of new investment in the LNG industry in this State. Ashburton North Strategic Industrial Mr Barnett said Wheatsone would Area, near the small Pilbara coastal deliver significant benefits for the The project includes development of town of Onslow. local community with Chevron, its offshore gas fields, a 225 km pipeline, The Premier congratulated Chevron and partners and the State Government port facilities and an initial two LNG its Wheatstone Joint Venture partners spending approximately $250million on trains with a combined capacity of Apache, KUFPEC and Shell on their community and public infrastructure 8.9 million tonnes per annum (mtpa). commitment to the project. in Onslow, including the upgrade of the town’s water and electricity supplies. “Wheatstone is creating enormous “Wheatstone represents employment and industry participation George Kirkland, vice chairman, Chevron part of a major step opportunities for the State and Corporation, said: “We’re constructing transforming Onslow, as well as a facility that will benefit generations. forward in the operations cementing WA’s status as a major global Like Gorgon, it will produce energy by energy provider,” Mr Barnett said. redefining what technically-complex, and scale of WA’s LNG environmentally-responsible projects Chevron estimates Wheatstone will look like in the 21st century.” create 6,500 direct and indirect jobs at industry,” Mr Barnett said. peak construction, 300 new operational Other community benefits include: “This project together with the LNG jobs as well as delivering an estimated • a $20 million contribution, with projects currently under construction $17 billion to Australian and Western $10 million from the Joint Venture and the existing North-West Shelf Australian businesses and services over and $10 million from the State operations will boost WA’s current LNG the life of the project. Government under Royalties production from 17 mtpa to 45 mtpa “Western Australian-based companies for Regions, to a community within the next few years. development fund have already secured contracts worth “This will also position WA as the nearly $500 million since the final • more than $66 million for community world’s second-biggest supplier of LNG investment decision was made in late infrastructure including an airport and well on the way to increasing WA September 2011. To date, contracts upgrade and construction of a new LNG production to more than 60 million have been awarded for engineering, ring road, community swimming tonnes a year by 2020.” construction, accommodation and air pool, library and visitors’ centre The Wheatstone groundbreaking services,” the Premier said. • a further $120 million plus for ceremony was held two years to the day “The construction of a $1.2 billion public infrastructure including from the ceremonial groundbreaking for domestic gas plant to feed 15 per cent of road upgrades, waste and waste the Gorgon project on Barrow Island. the gas from the Wheatstone operations water management and upgrades into the State’s energy market is also a to health, education and emergency very important component of the overall services facilities.

17 The challenge of China

China is going through the most rapid transformation in its history. Accompanying that, the Department of State Development’s office in that country is also undergoing a “transformation”, though of a less-dramatic type. Regional Director of 17 years B.J. Zhuang has retired, with the Shanghai office to be run by Nathan Backhouse.

Building relationships ... the department’s new Regional Director in China, Nathan Backhouse, who returns there as the country enters a new growth phase.

Moving to China is almost like a also has worked a as consultant the Nathan will be working alongside homecoming for Nathan Backhouse, mining sector in Mongolia and Korea and local staff representing various WA who spent five years in China as as a lobbyist for the Australian Chamber government departments, including a diplomat with the Australian of Commerce with a China focus. education, agriculture and tourism. His government, working in the mining The “I’m a bit rusty” Mandarin speaker role is to support WA companies seeking and commodities area. took up the reins in Shanghai in early to enter the Chinese market and to foster “I guess, the prospect of being involved February after 14 months as the Chinese investment in Western Australia. once again out in the field in China was Department’s Director of International too hard to resist,” said Nathan, who Trade and Investment. The life and times of B.J. Zhuang

He could be regarded (literally) as “part “One of the major activities during my strategies in China. He has also seen of the furniture”. He’s certainly witnessed three year there, apart from two thirds of the transformation of China to world tumultuous times. the federal cabinet, including PM John economic powerhouse and the current Howard, who visited China during the From an economic viewpoint, B.J. Zhuang rapid growth of WA through its supply of period, was the Channar Iron Ore joint (known everywhere as B.J.) has seen resources to China. venture negotiation to support Shanghai it all when it comes to China and Baosteel development. “I’ve been very lucky to serve the state Western Australia. at the time when the world has become “In 1987, the then WA Government smaller due to globalisation and China B.J., who has been with the Department decided to set up the Overseas Relations of State Development for 21 years, Office and I was offered work with the has been quickly returning to economic recently decided to retire and is currently WA Government. importance in the world,” he said. on an extremely long break. “I went to Perth in late September 1987 He has many major achievements but He graduated from East China Normal as the Adviser to the Overseas Relations lists the following as his most memorable. University in 1987. This meant the former Office attached to the Department of “First, there was WA’s sister state/ English major student’s “learning” years Premier and Cabinet. province relationship with Zhejiang,” occurred during the Chinese Cultural “I did my MBA at UWA for two years B.J. said. Revolution (1966-1976). (1988-1989) while working one day a week “I was involved in establishing the Now able to find time away from the plus university holidays at the Overseas relationship 25 years ago and expanding constant grind of life as the department’s Relations Office during those two years, the relationship since then. representative (Regional Director of before formally becoming a WA public the Western Australian Trade Office in servant from the beginning of 1990. Exchanges and cooperation between the China) in Shanghai (and his many mobile “The Overseas Relations Office was two sides have covered areas of trade and phones) B.J can take time to reflect on a initially located on the second floor of investment, parliament exchanges, sister brilliant career. 197 St Georges Terrace when it was a part cities, education, sports, police, of DPC. Later, when Bob Fisher became “My first job was an interpreter and tour arts and culture, public servants’ the head of Department of Trade, we exchange, agriculture and food, health, operator with the Shanghai Branch of moved to London House to be part of that work safe and chambers of commerce on China International Travel Service in the department, before moving again in 1990 both sides. section looking after Australian and New to SGIO building as part of the Ministry Zealand visitors,” he said. of Economic Development. Then that The success of the relationship was well “In 1984, I was seconded to work as the became the Department of Commerce recognised in China as a model for others head interpreter for the newly-established and Trade in 1994.” to learn from, with WA receiving a Chinese Australian Consulate General in Shanghai. B.J. has worked with a raft of national government award at the China In fact, I was the first locally-engaged staff governments advised many Western International Friendship Cities Conference at the consulate. Australian companies on their last year.

18 “China is not an easy market to enter, so “This means they will be more receptive “We have always been good at selling it needs people on the ground to facilitate to things like forward contracts and other our raw materials, but I see a strong access,” Nathan said. advanced financial products. market for us to sell our knowledge and technology, particularly in the fields of He sees his major task as strengthening “Right up to the end of the 1990s, the current, and building new, relationships, Chinese were internally focussed, so exploration,” said Nathan. they would satisfy demand internally,” based on the Chinese system of Guanxi “There are abundant minerals in China, he said. “But now they are sourcing from (pron. gwan-shee) – a complex set but often at great depth. This is where overseas, and they are moving to having a of relationships and something many fully international focus. we can take a lead and promote Australian companies take time to adapt to. our expertise.” Nathan sees his return to China “At a consumer level, this While he sees the dynamics of business coming at the start of a new cycle of Building relationships ... the department’s new Regional Director in China, Nathan Backhouse, who returns there as the country in China changing, becoming more fluid enters a new growth phase. development, one where China will is reflected in the way they and dynamic, Nathan says the basics of become even more internationally the role remain. focussed in more ways than one. now want to wear brand- “At the end of the day, the department’s “Traditionally they have been reluctant to role is to add value to the WA economy, finance their companies with debt,” said name clothing, and drive whether it’s by attracting Chinese Nathan. “They would only use equity. But investment, or helping WA companies that’s changing as we start to see the overseas-badged vehicles.” establish themselves in China. rise of private entrepreneurs: people who Nathan sees a steady growth in the do not come from within government- resources sector, but with prospects of “We have an excellent reputation in controlled companies. some diversification. China: it’s my job to build on that.”

“There was China Southern Airlines Flying College in Perth, recalled B.J. “I assisted in the establishment of the college in 1993. Since then more than 1,000 pilots from Asia’s largest airlines have been trained at two airports in WA. “When it comes to resources, I have been involved in initial introduction of or © Rio Tinto facilitating most major investments from China into the WA resources sector in B.J. (left) explains the mysteries of iron ore to Wu Bangguo, Chairman of the Standing Committee of National People’s Congress and now the second most important leader in recent years. China. He visited the Pilbara in May 2005. “I was directly involved in the promotion of LNG to China and the success in winning the supply contract of China’s “Minerals and petroleum are resources There are many tales about B.J., mostly first LNG project in Guangdong in 2002, but they themselves alone can’t bring relating to his near-legendary status as worth A$25 billion at that time.” wealth to WA,” he says. a workaholic. Someone said they once “The next big cooperation with China saw him getting out of a limosene with For his services, B.J. was admitted as a will be in agribusinesses, on food safety three mobile phones. However, B.J. Member of the Order of Australia in 2004 and security. refutes this. “No, I do not have three for that. “WA can learn the lessons from our mobile phones. Although, when I am in While B.J’s future will be a little less iron ore cooperation with China to date, Perth I often have one additional phone hectic, he is keenly watching what will be because we were not ready for China’s from the department in order to save an ongoing rapid expansion of the steel industry massive growth from costs,” he said. Chinese economy. 2003. So WA’s agricultural and food B.J is remaining in China and taking “China is going through the transition sector should get itself ready for up a position with an Australian mining China now. from the previous command economy company in mid March. to market economy with unprecedented “Tourism will also be growing strongly “I am a Chinese but first-generation economic growth,” says B.J. and again WA needs to quickly upgrade migrant to WA and therefore I see myself our capacity. “The main challenge is to understand the as a Western Australian,” he says. “Given China’s manufacturing capacity differences and work with partners on “I will go back to WA eventually. My son and WA’s R & D capabilities, both sides both sides to bring cooperation to fruition is studying medicine at the Australian have great potential for cooperation in and on a win-win basis.” National University and I hope he will live R & D sector, particularly in mineral in Perth when he graduates.” B.J. remains philosophical about what & petroleum sector and the bio lies ahead. technology sector.” See you soon, B.J. 19 Premier opens new Singapore office

The Premier and Minister for State “As a small island city state, Singapore The office will be managed by the former Development Colin Barnett opened is strategically linked in terms of land CEO of Tourism Western Australia and the government of Western Australia’s and sea hubs. Eventscorp, John Osborn, who also newest overseas office recently. received the Australian Sports Medal “Annual trade between Western for his contribution to Australian Located in the Suntec Tower in the Australia and Singapore is worth sports’ management. heart of the Singapore central business more than $5 billion, and Singapore is district, the Government of WA Trade an especially significant market and “The office will be a conduit for WA and Investment Office was officially investor in for Western Australia’s food exporters wanting to get their products into South East Asian markets, and as opened on 15 March. production,” he said. a source of advice for Asian investors” This catalyst for the new office came said John. from a three-day visit by Mr Barnett to “Western Australia is Singapore in October 2010. “WA will certainly benefit, as our home to 30 per cent research show Singapore firms are “There has always been a strong interested in exploring investments and bond between Western Australia of Singapore-born business opportunities here, particularly and Singapore, so this is a fantastic Australian residents, many in oil and gas and logistical services opportunity or both our economies to and infrastructure.” benefit from closer economic ties,” thousands of Singaporean Mr Barnett said. professionals and business “Singapore and WA are naturally leaders have studied in complementary. WA is a world-scale resources economy with enormous WA and our universities potential for growth, while Singapore, one of Asia’s best-performing maintain strong education economies and a major global trading and research links. centre, is rapidly expanding its role as an investment centre. “Singapore is also our second largest source of international “A growing number of international visitors and an important investor in investment brokerage companies are tourist accommodation. establishing a presence in Singapore, while in their own right, Singaporean “We have opportunities to strengthen businesses and government bodies hold these relationships and develop new overseas investments with a net worth of partnerships in areas such as film and John Osborn. almost $500 billion. sport and recreation. 20 WA among world’s best mining and exploration destinations

Western Australia’s international “The State Government’s standing as a destination of choice for investment in the mining industry reforms to the approvals has been strengthened by the 2011-12 Fraser Institute survey results. process have offered This year WA was among the top greater transparency and 20 mining jurisdictions in the world, with the State ranked equal 11th of 93 certainty for industry and jurisdictions - up six places from last year in the internationally-respected survey. this was reflected in the WA’s overall score was 81.5, equal with the Northern Territory. latest survey’s results.” Mines and Petroleum Minister Norman Moore. Mines and Petroleum Minister Norman South Australia was 19th spot with Moore said he was not surprised by the a score of 75.3 out of 100, while pleasing results, despite the recent Queensland gained 10 spots to take 28th progress of the Federal Government’s position with a score of 65.5, followed by mining and carbon taxes. Tasmania in 30th and New South Wales in 32nd. Victoria ranked lowest in 44th “WA’s reputation as the spot with a score of 52.1. nation’s leading State In another category, Mineral Potential Assuming Current Regulation – Land Use when it comes to attracting Restrictions, the survey also ranked WA as the most attractive Australian jurisdiction exploration and mining for mineral potential. has been solidified again, thanks to the hard work of the State Government and the Department of Mines and Petroleum,” Mr Moore said.

21 © Rio Tinto New Pilbara project to generate 600 jobs

The State Government has cleared the “These approvals are the Approval for the new mine was granted way for a rail and power supply project under the Iron Ore (Hope Downs) in the Pilbara, estimated to be worth final step for development Agreement 1992 in July 2011 and the more than $400 million and which will rail and power supply components generate up to 600 jobs. of the 15 million tonne were approved under the Iron Ore (Hamersley Range) Agreement 1963 in The project was overseen by the per annum (Mtpa) Hope December 2011. Department of State Development, Downs 4 iron ore mine, at whose Project Facilitation Team The Premier said the State Government managed approvals for iron ore an estimated total cost of granted the approvals and special expansion projects in the Pilbara, more than $1.2 billion,” railway licence after consideration worth a combined total of almost of impacts of the rail and power $10 billion in the final half of 2011. Mr Barnett said. infrastructure on affected land holders and on the environment. Premier Colin Barnett said the “The new mine will create about 1,500 Government granted Rio Tinto a special new jobs and Rio Tinto expects first railway licence for a 53 km railway production to commence in the second line and approved a 220 kV electricity quarter of 2013. transmission line to connect the new Hope Downs 4 mine to the existing Hope “Following Hope Downs 4 receiving Downs 1 infrastructure. environmental approval on January 31, 2011, the company and Government The Hope Downs 4 mine is being agencies have worked together developed by a joint venture between Rio efficiently to develop detailed proposals, Tinto and Hancock Prospecting Pty Ltd, and finalise approvals, for the mine, rail and will be operated by Rio Tinto. and power supply components. The rail and power project will be funded, built and operated by Rio Tinto. © Rio Tinto

22 The Department of State Development (DSD) recently occupied centre stage, literally, at a major promotional

Sarah Woods with Australian event, G’DAY USA, recently. Heading the small delegation, Ambassador to the US, Kim Beazley which was a joint effort between several government at the recent G’Day USA promotion. Both went to the same school, departments, was former graduate officer, Sarah Woods. Hollywood High. Graduate career led to international stage

The arts, culture and investment were Capping off the event was a presentation Each year the department, in the focus of this year’s G’DAY USA, held Sarah made to a Houston resources conjunction with the Department of in several US cities. conference, Energy in an Evolving World: Mines and Petroleum and Department Sustainability, Reliability, Affordability – of Commerce, offers a number of In a partnership between DSD, Tourism Continuing the Conversation. places for graduates, who undertake an WA, Screen West and the South West 18-month training program in various Development Commission, Western In the presence of more than 200 energy areas. Competition for places is keen; Australia took centre stage alongside executives and industry leaders, the rewards great. other State agencies to foster interest Sarah delivered a 20-minute insight and investment in Australia. into WA energy industry and investment opportunities. “The training and support Held across seven cities, Western Australia focussed its energy for a week Judging by the number of business cards the department provides is on Los Angeles and Houston activities, she received after the presentation, it exceptional and certainly which included tourism development, was a triumph. a digital industry seminar a black-tie equipped me to organise “The US promotion certainly was a celebrity gala and an energy conference. career highlight,” said Sarah, who has a the US mission. The variety of promotions enabled a double degree in commerce and political wide range of the State’s industries and science and is undertaking her Masters “I just don’t think I’d regions to show their wares to industry in international relations. heavyweights and the media. get the same opportunities Her attendance was the culmination “It was a well-balanced range of of four years’ of work within the elsewhere,” Sarah activities, which certainly gained us department, where she is now Manager Woods said. some tremendous media exposure,” of the Europe and the Americas desk said delegation coordinator, Sarah in the International Trade and Woods, from DSD. Investment division. In her time with DSD, Sarah has “We had to maximise our worked in social impact, community efforts, so we were careful consultation, industry and resources policy development and project to select a good mix of management. Prior to that she spent two what we offer in WA, from years with the Department of Premier and Cabinet, undertaking a graduate the arts, to technology training program. and resources.”

23 Windfall for local companies

© Chevron

Local jobs and supplier opportunities are being created during the building of the Accommodation Construction Village on Barrow Island.

Western Australia’s massive resource During peak construction, Gorgon and is a joint venture of the Australian projects are creating more than just jobs Wheatstone Projects together will create subsidiaries of Chevron (approximately at the point of extraction. an estimated 16,500 direct and indirect 47 percent), ExxonMobil (25 percent), jobs in Australia. Shell (25 percent), Osaka Gas (1.25 There’s a flow-on effect to many local percent), Tokyo Gas (one percent) and companies, which is becoming more Gorgon is one of the world’s largest Chubu Electric Power (0.417 percent). evident as major projects continue their natural gas developments and the relentless march towards completion. largest single-resource projects in The Project remains on track to deliver The $43 billion Gorgon Project and Australia’s history. It will develop the $20 billion in Australian Industry $29 billion Wheatstone Project in the Gorgon and Jansz/Io gas fields, located Participation expenditure during northwest of WA are prime examples. within the Greater Gorgon area, about construction. To date, about $15 billion 130 kilometres off the north-west coast has been committed to Australian The two Chevron-operated projects are of Western Australia. industry for work as wide-ranging as providing opportunities and economic helicopter services and installation of a Gorgon includes the construction of a benefits on a scale never seen before 90 km domestic gas pipeline. in Australia. 15 million tonne per annum Liquefied Natural Gas (LNG) plant on Barrow Chevron in Perth now directly employs According to the company, they Island and a domestic gas plant with the about 3,000 people – a dramatic increase will generate almost $50 billion in capacity to provide 300 terajoules per from about 500 only five years ago. expenditure on Australian goods, day to supply gas to Western Australia. services and jobs and will bolster There are more than 2,800 jobs that government revenue by more than The Gorgon Project is operated by an have been created on the construction $60 billion through various tax streams. Australian subsidiary of Chevron and site at Barrow Island. Overall, since construction began, about 5,000 GORGON AIP CONTRACTS SNAPSHOT Australian jobs have been created (more (Some of approximately 350 contract awards to Australian-based companies.) than 90 per cent in WA through about 350 Australian based contracts on Company Work Cost Notes ProjectConnect). Hertel Modern Paint insulation $90m over Malaga workshop, one of the The Installation of the domestic gas pipe and fireproofing. 3 years largest sheet metal fabrication from Barrow Island jetty to the mainland, Cryogenic insulation facilities in WA, will cut and to tie-in to the existing Dampier to and fireproofing prepare most of the materials, Bunbury Natural Gas Pipeline is worth on the gas install on-plant equipment $300 million. As part of the contract, processing plant and modules at Henderson a joint venture spearheaded by WA waterfront and then complete company Clough has undertaken to final installation and target five per cent Indigenous workforce interconnections on site at participation and two per cent (of the Barrow Island. 200 local jobs, onshore portion) to be performed by including 20 trainee positions. Indigenous businesses (sub-contractors Ertech General services $50m over Barrow Island roadworks, and suppliers). 12 months earthworks, civil, mechanical, The Australian Marine Complex in electrical and building works. Henderson, south of Perth, is buzzing Work for about 60 people. with Gorgon activity. For example, the AGC Industries Pipe spool fabrication $50m Fabrication, storage, coating Leighton-Saipem Consortium has a and testing of 8,200 pipe $1 billion contract to design and spools. 100-150 people will construct massive concrete caissons and be employed. other marine structures that will support Thiess Site preparation $500m Earthworks, drainage, the 2.1 km LNG jetty at Barrow Island. roads, permanent in-ground Even larger is the $2.7 billion contract services, minor concrete with a joint venture that includes works for the preparation of Clough Projects Australia Pty Ltd the plant site, administration and Hatch Associates Pty Ltd Group, area, airport runway, utilities which will coordinate the Engineering, corridor and causeway. Procurement, and Construction Monadelphous Civils and $85m Installation of onshore Management for downstream underground pipelines, cables and tubes on components and logistics. Barrow Island. 145 employed. There are at least another 15 large-scale Sinclair Knight Marine monitoring $113m Monitoring of the marine projects with high Australian Industry Mertz environment around Barrow Participation guaranteed to flow through Island during and after marine other Australian businesses. facilities construction work. While “sister” project Wheatstone is Toll Holdings Supply base and $180m Receipt, warehousing only just starting to ramp up, the flow- logistics and movement of goods through effects are being felt, with once they are delivered to John Holland being awarded work for Barrow Island, as well as construction of accommodation, Skywest waste removal and cleaning winning the fly-in fly-out air services and services. Monadelphous construction, operation Thiess, Construction village $520m Design, manufacture, delivery support and associated services. Decmil, Kentz and commission of a 4,000 bed In a development which will grow Gorgon construction village. local capacity and capability, a joint venture between Thiess and Belgium’s Taking shape ... an aerial view of the Construction Village on Barrow Island. Besix SA won a $260 million contract for Wheatstone. The joint venture will construct the breakwater and materials offloading facility, creating more than 300 jobs, with of the work based in Onslow. Thiess managing director Bruce Munro said 80 per cent of the work under the contract would take place in Australia. The contract is Thiess’ second win at Wheatstone, having previously secured a micro-tunnelling deal from Chevron. The accompanying table provides an insight into the scope of major Australian Industry Projects (AIP) involved for Gorgon. All figures are approximate (supplied by Chevron). © Chevron

25 Burrup fertilizer plant rebadged

The future of the Burrup liquid Mr Haslestad said Yara would rename Apache’s Australia region vice-president ammonia plant has been assured after the business, in an effort to leave behind Thomas Maher said the investment a year-long “auction”, run by Burrup the controversy associated with the decision was spurred by the company’s Holdings’ receivers. former operation. desire to stabilise the project and secure the WA market for Apache’s gas. US company Apache Energy has “We will re-name it Yara Pilbara, as acquired a 49 per cent interest in Burrup we move to establish Yara standards of “This new ownership structure will Holdings, while existing stakeholder Yara corporate governance,” he said. stabilize the Burrup project after a International increased its ownership to period of significant uncertainty, and Apache, a leading producer of natural 51 per cent. secure a long-term economically viable gas for the domestic Western Australia market for our natural gas production in Yara will become the plant’s operator market, currently operates the Harriet Western Australia,” said Mr Maher. after a transition to ensure continued joint venture, which has supplied natural safe operation of the plant. gas to Burrup Fertilisers since the plant commenced production in 2006. “This ownership stake Jorgen Ole Haslestad, Yara’s president, said a technical ammonium nitrate With a capacity of 850,000 metric tons provides a means to (TAN) plant, to be built next to the liquid annually, the plant is one of the world’s increase the value of our ammonia operation, will be 75.5 per cent largest ammonia facilities, producing owned by Yara, with Apache holding the six per cent of the total world output of Australian gas reserves.” remaining stake. tradable ammonia. “We are pleased to be associated with Yara, which is one of the world’s largest producers of ammonia fertilizers and has a long-term off-take agreement for Burrup’s production,” Maher said. The plant has been operating as usual since the receivers stepped in. At the time of its opening in April 2006, the plant the world’s largest greenfields ammonia plant. The plant was developed over a four-year period by Indian-based Burrup Fertilisers Pty Ltd at a cost of about $700 million.

Arial shot of the Burrup liquid ammonia plant.

26 Flashback

In this new column, we’ll take a

look at what was happening 1981 1991 10, 20 and 30 years ago. 2001

Slim pickings, March 1981 • The WA government was about to Featured articles included a focus on a advertise for developers to set up a proposal by Energy Equity and Woodside At only 12 pages, the magazine $10 million supply base at (n conjunction with Western Power) to had a limited audience. The front Exmouth to service off-shore oil provide gas-fired power generation for cover said: “Quarterly bulletin for and gas projects. the Kimberley towns of Broome, Fitzroy senior management”. Crossing and Camballin. Issued by the Department of Resources A new Department, March 1991 Development, the then Minister Peter Still in the Kimberley, the potential of Ian Taylor was the then Minister for mining kaolin (a light-coloured clay-like Jones wrote about the release of a the newly-created Department of State report on “the potential for increased material used in making crockery) was Development, which brought together being explored. processing of Australia’s minerals the work of five former departments. and resources”. The first Chief Executive Officer was Austeel was touting its $3 billion There was mention of “normalising” John Morhall. investment in an integrated iron and steel project near Cape Preston. company towns, with Newman in the The front cover of an advertising- Pilbara (pop. 6000, currently 7000) The plant would produce pellet and laden, 32-page Prospect pointed to the briquetted iron. becoming the responsibility of the chemical industry’s importance, with a East Pilbara Shire Council. Negotiations picture of CSBP and Farmers’ sodium Construction of a $16 million island were proceeding for similar action cyanide plant at Kwinana. A report was breakwater at Jervoise Bay, south of at Dampier, Wickham, Tom Price underway into the economic impact the Fremantle was well underway. and Paraburdoo. industry in the Kwinana area. Several The State’s trading partnership with There was an article on population, with articles looked at various industries South Korea was strengthening, 1.27 million people living in WA and the at Kwinana, including lime, caustic with two-way trade worth $3.2 billion, State’s population experiencing steady soda processing and a titanium dioxide compared to $1.4 billion a growth of between 8.3 and 10.6 per cent pigment plant. decade earlier. between 1975 and 1980. In oil and gas news, the Harriet gas Prospect reported that in the past In other news: project was predicted to come on line in 10 years, more than 15 mining, 1992, and Woodside was set to announce • Four companies received permits technical, economic and marketing the go-ahead of the Cossack oil field. to explore for oil and gas in the programs between WA and China Canning Basin. Focus on regional had been completed, saying “China’s • Tenders were about to be called development, 2001 industrial growth is expected to be for the supply of major items and Labor had just been returned to quite spectacular”. equipment for the Dampier to Perth government after eight years in A fourth Japanese power utility (Tohoku natural gas pipeline. opposition. Clive Brown was the Minister Electric) signed up for supplies from the • WA’s gold and mineral production and Prospect had bulked out to North West Shelf LNG project. for the calendar year 1980 was 44 pages, still containing advertising. The then CEO of Apache Energy, Jim $2.6 billion. The new government had created a Bass, said “the offshore oil and gas • The Bank of New South Wales and $75 million Regional Development fields of Western Australia have the Commercial Bank of Australia Fund to “enable regional towns and potential to be of global importance”. merged. The Wales offered communities to support new The Albany windfarm was $700 million for the CBA, industry development”. nearing completion. making it the biggest merger in Australia’s history.

27 Commenced Operations Committed Projects

Agriculture 17,000tpa of battery grade lithium carbonate. A large The expansion project will lift capacity of the refinery proportion of this will make its way into the growing from 3.5Mtpa to 4.7Mtpa through expanded mining East Kimberley - Ord - Ord/East Kimberley markets of China and Japan. operations, additional refining capacity and upgraded Expansion Project Expenditure: $75m. port facilities. Construction is ongoing and first WA State Government production is scheduled for Q1 2012. Employment: Construction: 100; Operation: 75 The State Government has committed $301 million Expenditure: $3b. to increase the existing amount of irrigated land in Employment: Construction: 1500; Operation: 200 the Kununurra region by adding 15,200 hectares Oil & Gas Developments in the Weaber Plains. This funding will provide Carnarvon Offshore Basin - the construction of irrigation channels, roads and Heavy Mineral Sands Cossack/Wanaea - OKHA off-farm infrastructure to service the future needs Keysbrook - Heavy Mineral Sands Mine of the region’s growing population and sustain Woodside Energy economic growth. The Commonwealth Government The Okha floating production storage and offloading Matilda Zircon Limited has committed $195 million of funding for social and (FPSO) facility is located 34km east of the North Matilda Zircon is proceeding to develop a mineral common use infrastructure in the East Kimberley Rankin A platform and is moored to a riser turret sands mine located near the township of Keysbrook, region. Construction is well underway and some of between the Wanaea and Cossack oil fields. The approximately 70km south of Perth. It has ore the infrastructure projects are now complete. The Cossack, Wanaea, Lambert and Hermes (CWLH) reserves of 41Mt, containing 1.2Mt of heavy mineral package will be fully implemented by June 2013. fields are connected by flexible flowlines to subsea concentrate. The project is expected to produce Expenditure: $506m. wells which have produced over 424 million barrels 80,000tpa of leucoxene products and 12,000tpa of oil since production began in 1995. The Okha, a of zircon over its eight year mine life. In October Employment: Construction: 971 recently converted FPSO, is expected to produce 2009, the Keysbrook project received environmental 30,000 barrels of oil per day when reaching a steady approval from the Minister for Environment. In Infrastructure state of operations and has a storage capacity of October 2011, Matilda Zircon announced that 925,000 barrels. Crude oil is offloaded from the the Shires of Murray and Serpentine-Jarrahdale South West Region - 17 kilometres north east vessel via a flexible line to bulk tankers moored approved the project subject to conditions, most of of Bunbury - Kemerton (HUILS - Heavy Use astern, while a pipeline exports LPG-rich gas from which had already been mutually agreed with the Industrial Land Strategy) the Cossack and Wanaea fields to the North Rankin company. The Shire approvals now allow Matilda WA State Government A platform, before being transferred to the Karratha Zircon to complete detailed planning and engineering to enable construction to start in 2012, with first Kemerton Industrial Park, located 17km north of Gas Plant for processing. The Okha began production production planned for early 2013. Bunbury, is the main strategic industrial area in the in September 2011 as part of the A$1.8 billion CWLH South West region and the nearest regional heavy Redevelopment Project to support ongoing safe and Expenditure: $50m. reliable production from the CWLH fields. industrial site to Perth. It is designed to supplement Employment: Construction: 35; Operation: 30 the Kwinana Industrial Area, only 90 minutes away by Expenditure: $1.8b. road. The estate comprises 7,543ha of land, including Iron Ore 2,019ha of industrial core, 293ha support industry Vanadium area and 5,231ha buffer areas. It is accessible to the Mid West Region - Karara Iron Ore Port of Bunbury by road and planned rail link and is Windimurra - Windimurra Vanadium Project Karara Mining Ltd (Gindalbie Metals Ltd / serviced by major road links to the metropolitan area. Atlantic Limited Under the Heavy Use Industrial Land Strategy, the Ansteel Joint Venture) Government is progressing Kemerton towards project Atlantic successfully commissioned and achieved The Karara Iron Ore Project is Karara Mining’s ready status by undertaking environmental, heritage first ferrovanadium production at its Windimurra cornerstone production project in the Mid West and planning approvals for the estate. Work towards vanadium project in January 2012. The company region. Construction commenced in November 2009. progressing approvals commenced in 2009 and is is now in the process of an accelerated production Karara will deliver some 10Mtpa of iron products by anticipated to be completed in 2012/13, by which time ramp-up at the plant, with full production of Q3, 2012, comprising 8Mtpa of high grade magnetite the structure plan and zoning adjustments will also 6,300 tonnes per annum of contained vanadium concentrate and blast furnace quality pellets and have been completed. targeted in the first quarter of the 2013 calendar 2Mtpa of Direct Shipping Ore hematite. The Project is year. Atlantic is engaging with specialist engineering underpinned by a world-class JORC-Code compliant groups to assist in the production ramp-up. Atlantic Iron Ore resource base comprising a 977 million tonne last year announced a 30% increase in the magnetite reserve, a 2.518 billion tonne magnetite Mid West Region - Extension Hill Hematite Mine JORC-compliant Ore Reserve estimate for its resource, a 10.9Mt hematite reserve and a 16.2Mt Windimurra vanadium project to 128 million tonnes. Mount Gibson Iron Limited hematite resource. This prompted an upward revision to the potential Mount Gibson Iron has developed a 3Mtpa hematite mine life of Windimurra to 28 years. Expenditure: $1.975b. mining operation at Extension Hill, 260km south Expenditure: $600m. Employment: Construction: 1500; Operation: 500 east of Geraldton. The ore is trucked to a rail head near Perenjori then railed to the port of Geraldton Employment: Operation: 130 Pilbara - BHPB - Inner Harbour Expansion - for export. Port Hedland Expenditure: $73m. Ammonium Nitrate BHP Billiton Iron Ore Pty Ltd Employment: Construction: 150; Operation: 100 In March 2011, BHP Billiton announced approval of Kwinana - Ammonium Nitrate Facility Expansion US$7.4 billion (BHP Billiton’s share US$6.6 billion) Pilbara - FMG Chichester - Iron Ore Mine, Rail CSBP Limited of capital investment to continue production growth and Port Development In December 2011, the Wesfarmers Board gave final in the company’s Western Australian iron ore operations. It will deliver an integrated operation with approval to proceed with the expansion of CSBP’s Fortescue Metals Group Ltd capacity in excess of 220 million tonnes per annum. ammonium nitrate production facility at Kwinana FMG Chichester operates iron ore mines at The investment includes $2.3 billion (BHP Billiton’s from its current capacity of 520,000tpa to 780,000tpa. Cloudbreak and Christmas Creek in the Chichester share US$1.9 billion) to increase total inner harbour CSBP received environmental approval for the Ranges of the eastern Pilbara, serviced by a multi- installed capacity to 220Mtpa with debottlenecking expansion in October 2011. The expansion involves user railway and port facilities at Port Hedland. FMG opportunities to 240Mtpa. The project is currently on the construction of an additional nitric acid plant and Chichester is currently ramping production up to schedule (overall project is 42 per cent complete) and ammonium nitrate plant, together with an upgrade 120Mtpa from the Chichester Ranges. on budget. of the existing prilling plant and other infrastructure Expenditure: $2.3b. Employment: Construction: 2500; Operation: 3200 work. Early site works have commenced and tenders for a second round of long-lead equipment items Pilbara - BHPB - Port Blending and Rail Yard Lithium have been issued. Current project timelines Facilities indicate the expansion will be completed in the BHP Billiton Iron Ore Pty Ltd Great Southern Region - Mount Cattlin Lithium first half of 2014. In March 2011, BHP Billiton announced approval of Project, Ravensthorpe Expenditure: $550m. Galaxy Resources Limited US$7.4 billion (BHP Billiton’s share US$6.6 billion) Employment: Construction: 300; Operation: 10 of capital investment to continue production growth Galaxy Resources Limited commenced in the company’s Western Australian iron ore commissioning of the Mt Cattlin lithium concentrate operations. It will deliver an integrated operation processing plant in September 2010. The mine and Bauxite with capacity in excess of 220Mtpa. The investment the mineral plant will produce approx. 137,000tpa Worsley/Boddington - Alumina Refinery - E & G includes US$1.7 billion (BHP Billiton’s share US$1.4 billion) to optimise resource and enhance of spodumene concentrate on completion of the Project Expansion to 4.7Mtpa ramp up phase. Preparation of a mining proposal efficiency across the BHP Billiton WA iron ore for the Stage 2 mining area including a community BHP Billiton Worsley Alumina Pty Ltd operation supply chain. The project is currently on consultation programme has commenced. Galaxy BHP Billiton announced in May 2008 the go-ahead schedule (overall project is 13 per cent complete) and started exporting its product to China in the first for the A$2.5 billion Efficiency and Growth (E&G) on budget. quarter of 2011. In China, Galaxy will produce expansion project at its Worsley alumina refinery. Expenditure: $1.7b.

28 Committed Projects Projects Under Consideration

Pilbara - Hope Downs 4 Iron Ore Mine high grade pellets will be exported each year. Ore facilities, low pressure separators, utilities and Rio Tinto Iron Ore production from the first and second, of a planned six accommodation. North Rankin B will be connected by production lines, is expected to commence in August two 100 metre bridges to the existing North Rankin Rio Tinto and its joint venture participant, Hancock and December 2012. A platform and on completion both platforms will be Prospecting Pty Ltd, are currently developing the operated as a single integrated facility known as the Hope Downs 4 iron ore mine at an estimated capital Expenditure: $5.2b. North Rankin hub. The North Rankin Redevelopment cost of US$1.2 billion. The new open-cut mine will Employment: Construction: 4000; Operation: 500 project also includes the necessary connections to have a production rate of 15Mtpa of high quality iron North Rankin A and some refurbishment of the North ore. The development of Hope Downs 4 also involves Nickel Rankin A platform. North Rankin B is scheduled for the construction of a 53km railway line to connect start-up in 2013 and will support the North West to the existing Hope Downs 1 rail spur and the Ravensthorpe - Ravensthorpe Nickel Operation Shelf Projects onshore gas requirements to supply construction of a 220kV electricity transmission line First Quantum Minerals Australia Nickel future customer commitments. to connect to the existing Rio Tinto power network. Pty Ltd The US$425 million railway and power project will Expenditure: $5b.Rare Earths be funded, constructed and operated by Rio Tinto. All FQM Australia Nickel (FQMAN) acquired the government approvals have been obtained, with first Ravensthorpe Nickel Operation (RNO) from BHP Rare Earths production expected in Q2 2013. Billiton in February 2010. FQMAN plans to return Expenditure: $1.6b. RNO to sustainable production by late 2011. RNO is Mt Weld - Rare Earths Mine an open cut mine and hydrometallurgical process Lynas Corporation Ltd Employment: Construction: 2100; Operation: 720 plant that produces a mixed nickel cobalt hydroxide intermediate product. The modifications are within The Mt Weld deposit is located about 35km south Pilbara - Jimblebar Iron Mine Expansion the plant’s existing footprint in the materials handling of Laverton and contains an estimated resource of BHP Billiton Iron Ore Pty Ltd area, including crushing, conveying and stockpiles. 23.9Mt at an average grade of 7.9% for 1.9Mt rare In March 2011, BHP Billiton announced approval of FQMAN aims to produce 39,000tpa nickel metal earth oxides (REO). The development includes an US$7.4 billion (BHP Billiton’s share US$6.6 billion) for the first five years after recommencement and open pit mine and a concentration plant, located of capital investment to continue production growth 28,000tpa nickel metal over the current anticipated 1.5km from the open pit mine. The first feed of ore in the company’s Western Australian iron ore mine life of 32 years. into the 33,000tpa concentration plant occurred in May 2011 and the plant was officially opened in operations. It will deliver an integrated operation Expenditure: $190m. with capacity in excess of 220 million tonnes per August 2011. The concentrate will be bagged and annum. The investment includes US$3.4 billion (BHP Employment: Construction: 200; Operation: 500 containerised on site, and trucked to the Port of Billiton’s share US$3.3 billion) to increase installed Fremantle for export. It will be shipped to a mining and processing capacity at Jimblebar Oil & Gas Developments $400 million processing plant in Malaysia, which mine to 35Mtpa with incremental debottlenecking will have an initial production capacity of 11,000tpa opportunities to 55Mtpa. The project is currently on Carnarvon Basin - Pluto LNG Project REO scheduled to commence in Q2 2012 subject schedule (overall project is 21 per cent complete) and Woodside Energy to Malaysian government approvals. Phase 2 will on budget. involve the expansion of the Mt Weld concentration Approved for development in July 2007, the project plant to produce around 66,000tpa of concentrate, Expenditure: $3.4b. will process gas from the Pluto and Xena gas fields, which will be required to meet the Malaysian located about 190km north-west of Karratha in processing plant’s expanded production of 22,000tpa Pilbara - Solomon - Pilbara - Western Australia, into LNG and condensate. The REO. Lynas expects all construction works Solomon Hub Stage 1 Pluto and Xena gas fields are estimated to contain associated with the planned phase 2 production Fortescue Metals Group Ltd 4.8 trillion cubic feet (Tcf) of dry gas reserves and an expansion in both Western Australia and Malaysia to additional 0.25Tcf of contingent resources. The initial Fortescue is progressing with construction of its be largely completed in 2012 and production output phase of the Pluto LNG Project comprises five subsea proposed 60Mtpa iron ore mine at Solomon and to ramp up to the targeted 22,000tpa of REO in 2013. supporting infrastructure. The Solomon Hub is wells on the Pluto gas field connected to an offshore Expenditure: $135m. planned to initially involve at least two mining areas, processing platform in 85m of water. Gas will be two processing plants and a 137 kilometre rail link to piped about 180km to the onshore plant in a 36-inch Employment: Construction: 145; Operation: 95 Fortescue’s existing Christmas Creek to Port Hedland pipeline. Onshore facilities at the Pluto LNG Park include a single LNG processing train with forecast rail line. The proposed mining areas and rail corridor Silicon Metal for the Solomon Hub are within Unallocated Crown production capacity of 4.3 million tonnes a year, in Land and active pastoral leases and approximately addition to storage facilities and an export jetty. First Kemerton - Silicon Metal Plant Expansion LNG cargo is targeted for March 2012. 70 kilometres north of Tom Price in the Hamersley Simcoa Operations Pty Ltd Ranges. First production is anticipated by mid 2012. Expenditure: $14.9b. Simcoa announced in October 2009 its decision to Expenditure: $4b. Employment: Construction: 5000; Operation: 300 expand the company’s 32,000tpa capacity silicon Employment: Construction: 1000; Operation: 3000 metal plant at Kemerton. The first-stage expansion, Carnarvon Offshore Basin - Barrow Island - involving installation of a third furnace, will increase Gorgon Project Yilgarn - Koolyanobbing Iron Ore Upgrade the plant capacity to 48,000tpa and is expected to Cliffs Asia Pacific Iron Ore Pty Ltd Gorgon Joint Venture come online in Q2 2012. Providing world demand for In September 2010, Cliffs approved an upgrade The Gorgon Joint Venture (GJV) made a final silicon continues to increase strongly, a second-stage of its Koolyanobbing iron ore operations from investment decision on the $43 billion Gorgon expansion, involving installation of a fourth furnace 8.5Mtpa to around 11Mtpa. Koolyanobbing is Project on 14 September 2009. The GJV’s foundation could take place by late 2013 and increase plant located 50km north east of Southern Cross and also project on Barrow Island includes a three train capacity to 64,000tpa. includes the Mt Jackson and Windarling mines. LNG development capable of exporting 15Mtpa Expenditure: $100m. The improvements consist of enhancements to the and a domestic gas project capable of delivering at Employment: Construction: 120; Operation: 40 existing Kalgoorlie-Esperance rail infrastructure, least 300 terajoules per day of gas to the mainland. an increase in rolling stock and upgrades to various The development on Barrow Island also includes other existing operational constraints. These potentially the largest commercial geosequestration Ammonia/Urea improvements are well underway and are expected project in the world. The project obtained State to be fully implemented in the second half of 2012. and Commonwealth environmental approval in Shotts Industrial Park - Collie Coal to Urea The development of the Mt Jackson J1 deposit, August 2009. The project is based on gas from Perdaman Chemicals and Fertilisers which contains 30Mt of iron ore reserves, is due to be both the offshore Gorgon and Jansz/Io gas fields. Pty Ltd completed in Q1 2012 and is expected to contribute to On-island activity commenced in late 2009 and the Perdaman Chemical and Fertilisers Pty Ltd is the increased production at Koolyanobbing. major construction work for the processing plant developing a $3.5 billion coal to urea plant at the Expenditure: $320m. commenced in 2011. new (to be developed) Shotts Industrial Park, near Expenditure: $43b. Collie. The plant will use proven coal gasification Iron Ore Processing Employment: Construction: 5500; Operation: 300 and fertiliser production technologies. Around 2.7Mtpa of coal will be used to produce approximately Pilbara - Cape Preston - Sino Iron Carnarvon Offshore Basin - North Rankin - 2Mtpa of urea, primarily for export. The urea will be CITIC Pacific North Rankin Redevelopment transported to Bunbury Port by rail. A 20-year off Woodside Energy take agreement has been signed with Incitec Pivot. CITIC Pacific Mining is constructing the Sino Iron The company has received all its environmental and project at Cape Preston, 100 kilometres south west In March 2008 the North West Shelf Project other approvals from both the Western Australian of Karratha. The magnetite iron ore project will participants approved funding of the A$5 billion North and Commonwealth governments. Construction is include a concentrator, 6Mtpa pellet plant, 25km Rankin Redevelopment which will recover remaining expected to commence in late 2012 with the first slurry pipeline, combined cycle 450MW power low pressure gas from the North Rankin and Perseus shipment of urea planned for 2016. station, new port and trans-shipment facilities, and gas fields, and extend the field life to around 2040. a 51GL desalination plant. At full production up to The project involves the installation of a new second Expenditure: $3.8b. 27.6 million tonnes of magnetite concentrate and platform North Rankin B with gas compression Employment: Construction: 2000; Operation: 200

All conversions from foreign currencies were calculated at the latest available rate. 29 Projects Under Consideration

Ammonium Nitrate a major East Asian industrial group for it to earn a is scheduled for 2016. In Q3 2011, BHP Billiton large minority interest in the Coburn project. The commenced construction of the Macedon project, Pilbara - Burrup Industrial Estate Site D - due diligence process and the agreement of detailed with gas production to commence in early 2013. Burrup Nitrates documentation is targeted to be completed in Burrup Nitrates Pty Ltd February 2012. Pilbara - Anketell - Anketell Port and SIA (Strategic Industrial Area) Burrup Nitrates Pty Ltd (BNPL), a joint venture Expenditure: $180m. WA State Government between Burrup Holdings Ltd (BHL) of Australia and Employment: Construction: 170; Operation: 110 Yara International ASA of Norway, has conducted a The Anketell project includes establishment of a feasibility study into the construction of a 350,000tpa multi-user, multi-commodity deepwater port and Technical Ammonium Nitrate (TAN) plant to be Infrastructure associated strategic industrial area (SIA) at Anketell, located on the Burrup Peninsula. Ammonia feedstock Dampier Peninsula - Browse LNG Precinct located 30km east of Karratha. The port and corridor will be supplied from BHL’s subsidiary company development will be a proponent-funded State owned WA State Government Burrup Fertilisers Pty Ltd, which operates its facility Port managed by the Dampier Port Authority. The directly adjacent to the proposed location for the The State Government is developing the Browse industrial land will fall under the jurisdiction of the new TAN plant. It is expected that all manufactured Liquefied Natural Gas (LNG) Precinct approximately Western Australian Land Authority. Three companies product will be sold into the Pilbara region. 60km north of Broome. By focussing development have expressed interest in developing facilities at Regulatory approvals have been finalised and the at a suitable location the Precinct will minimise Anketell: API Management Pty Ltd for its 30-40Mtpa company is aiming for operations to commence by the environmental footprint of gas processing and West Pilbara Iron project, MCC Australia Sanjin Q4 2014. any social impacts in the region while maximising Mining Pty Ltd for its 15Mtpa Cape Lambert Iron Ore opportunities for the local community to benefit from Expenditure: $600m. project, and Fortescue Metals Group (FMG) for its the development of the Browse Basin gas fields. On 100Mtpa Central Pilbara project. Numerous other Employment: Construction: 600; Operation: 65 30 June 2011, agreements were reached with the companies have expressed an interest in using the Goolarabooloo Jabirr Jabirr native title claimant group port facilities for bulk export. Gold to secure land for the Precinct. These agreements, valued at more than $1.5 billion over Iron Ore Kalgoorlie (330kms North East) - Tropicana Gold 30 years, contribute a range of benefits for Indigenous AngloGold Ashanti/Independence Group communities throughout the Kimberley region, while Great Southern Region - Joint Venture providing a strong governance role for the Traditional Southdown Magnetite Mine Owners of the land upon which the Precinct will be AngloGold Ashanti, as Joint Venture Manager, has Grange Resources Ltd established. Benefits will be further expanded when undertaken an intensive exploration and resource additional LNG proponents commit to development The Southdown Magnetite deposit is situated 90km development program approximately 330kms north in the Precinct. The Precinct will have the capacity to north east of Albany, near Wellstead. The Southdown east of Kalgoorlie. Plans for the project are to develop accommodate at least two LNG processing operations, Project is a joint venture between Grange Resources an open-cut gold mine and nearby processing plant. with a combined capacity of up to 50Mtpa. Woodside Ltd (70%) and Sojitz Resources & Technology Pty So far, a resource estimate of 5million oz of gold has Energy Limited, as a participant of the Browse Ltd (30%). The Definitive Feasibility Study is due for been identified with a mine life of at least 10 years. Joint Venture, has committed to the Precinct as a completion during the first quarter of 2012, after The feasibility study commenced in July 2009 and potential foundation proponent. Browse Joint Venture which the Project partners will decide whether to is ongoing. Environmental approvals were finalised participants are expected to make a final investment proceed with the Project. In June 2011, an increase in September 2010. Commonwealth environmental decision by mid-2013. in mine production from 6.8 to 10Mtpa was approved. approval was received on 13 December 2010. The Expenditure: $30b. The Southdown Joint Venture continues to work first phase of construction, 220km of road, an all and collaborate with relevant government agencies weather airstrip and the accommodation village is Employment: Construction: 6000; Operation: 400 to refine its mine, port and associated now complete. The second phase involving plant Oakajee - Oakajee Midwest Development infrastructure approvals, and to support the construction will begin in early 2012. Gold production Great Southern community. is planned for 2013. WA State Government Expenditure: $2.57b. Expenditure: $700m. The Oakajee Port will include common user Employment: Construction: 2000; Operation: 600 Employment: Construction: 700; Operation: 400 infrastructure (channel, breakwater, turning basin, navigational aids, provision for tug and pilot boat Mid West Region - Extension Hill Magnetite Mine pens, port administration offices and roads and Heavy Mineral Sands utilities) funded by the State and Commonwealth Asia Iron Happy Valley - Heavy Mineral Sands Mine Governments and private use infrastructure (at least Asia Iron has primary environmental approval to one Cape Class iron ore berth, as well as associated produce up to 10Mtpa of magnetite concentrate, Bemax Resources Ltd materials handling equipment and rail infrastructure) which will be transported by slurry pipeline to the Located adjacent to the Bemax Gwindinup deposits developed by Oakajee Port and Rail Pty Ltd. The Port port of Geraldton for export. The company is currently south of Bunbury, the project will involve the mining will also include provision for a non iron ore berth seeking secondary approvals. Asia iron is also of the Happy Valley North and South mineral sands in the future to provide import/export capability for undertaking an implementation study for the project deposits situated on private land and in State Forest. value-adding industries in the Oakajee Industrial and has appointed a project management contractor The two deposits contain over 750,000 tonnes of Estate. A northern railway will link the port to mines for project delivery. recoverable heavy mineral concentrate, with average to the north-east of Geraldton and a southern railway Expenditure: $2b. production expected to be around 150,000tpa over a will link to the mines in the south-east. The northern combined mine life of eight years. The concentrate rail line will be operated by Oakajee Port and Rail Employment: Construction: 1000; Operation: 350 will be trucked to Bemax’s Bunbury Mineral though an open access regime. Mid West Region - Jack Hills Expansion Separation Plant for final processing. In February Expenditure: $4b. 2011, the EPA recommended that the Minister for Crosslands Resources Environment not approve the companys proposal to Employment: Construction: 2000; Operation: 300 Crosslands commenced trucking 1.5Mtpa haematite develop the Happy Valley mine. Bemax has lodged an Pilbara - Ashburton North Strategic from its Jack Hills operations to the port of Geraldton appeal against the EPAs decision and the matter is Industrial Area in December 2006. Jack Hills Stage 2 will involve an currently with the Appeals Convenor. increase to 25Mtpa of haematite and beneficiation WA State Government Expenditure: $35m. feed ore. The ore will be transported by a new railway The State Government is developing the Ashburton to a new deepwater port at Oakajee. A bankable Employment: Construction: 100; Operation: 30 North Strategic Industrial Area (ANSIA) as a feasibility study for the project was finalised in Shark Bay - Coburn Zircon Project hydrocarbon precinct in the Shire of Ashburton, June 2011. 12km south west Onslow, to enable the development Expenditure: $2b. Gunson Resources Limited of natural gas projects and associated industries Gunson proposes to develop the Coburn zircon to exploit the gas reserves in the Carnarvon Basin Employment: Construction: 450; Operation: 350 project, located south of Shark Bay and approximately and Exmouth Gulf. In addition to the industrial area Pilbara - Cape Lambert Iron Ore Project 250km north of Geraldton. It contains total ore with proponent sites and general areas, the ANSIA reserves of 308Mt at an average grade of 1.2% includes a port with common user facilities, and MCC Australia Sanjin Mining Pty Ltd heavy minerals, all of which lie within the portion common user infrastructure corridors. The ANSIA MCC Australia Sanjin Mining Pty Ltd is developing a of the project area that has received government estate is intended to cater for the development of 15Mtpa magnetite iron ore mine in the Pilbara and environmental approvals for mining. The project is hydrocarbon processing, storage and exportation, aims to ship its first ore in 2015 via the proposed expected to produce 40,000tpa of zircon, 90,000tpa of with the overall vision of creating an industrial estate multi-user 350Mtpa port at Anketell. The Project ilmenite, 9,000tpa of rutile and 7,000tpa of leucoxene. that successfully and safely manages the varied comprises a proven JORC compliant 1.9bt iron At the proposed mining rate of 17.5Mtpa, the Coburn land uses in the area. Three foundation proponents, ore resource, a beneficiation plant, power plant, mine life is estimated to be 17.5 years which could BHP Billiton, Chevron, and ExxonMobil have been desalination plant, port facilities for exporting be extended by six years if the northern area receives allocated land within the ANSIA. Chevron made concentrate and other related infrastructure. MCC government approvals for mining. In November a final investment decision in September of 2011 has completed feasibility studies for the port, power 2011, a non-binding term sheet was executed with and construction has commenced. Gas to market supply, water supply, accommodation and general

30 This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. Projects Under Consideration site infrastructure. The mine and processing studies Pilbara - 120km northwest of Newman - Mining Timber are progressing. The company commenced native Area C - Iron Ore Mine Mirambeena Timber Processing Precinct - title negotiations with the Ngarluma Aboriginal BHP Billiton Iron Ore Pty Ltd Corporation in March 2010 and a preliminary native Engineered Strand Lumber The proposed Jinidi Iron Ore Mine Project is a title agreement was signed on 17 May 2011. An Lignor Ltd greenfields iron ore mine. The Project will include environmental scoping document was approved by the construction of open-pit mining and processing Lignor proposes to develop an Engineered Strand the EPA in August 2011. facilities, rail loading infrastructure and a rail loop, Lumber ESL®/ Engineered Strand Board ESB® Expenditure: $3.7b. and associated non-process infrastructure. The plant located at Mirambeena, about 15km north proposed Project is to be located approximately west of Albany. The first stage Commercial Plant Employment: Construction: 3000; Operation: 1000 55 km north-west of Newman in the Pilbara region of will be smaller than the second stage Commercial Plant in order to produce a range of products for Pilbara - FMG Central Pilbara Project Western Australia and 22 km east of the existing BHP certification to the Australian Building Code and (Solomon Stage 2 and Western Hub) Billiton Iron Ore Area C Mine. The proposed Project is subject to market conditions and all relevant overseas equivalents. The Plants will source most of Fortescue Metals Group Ltd government and BHP Billiton Board approvals. the timber from the extensive eucalypt plantations FMG’s Central Pilbara project is located in the in the Albany region. Lignor is finalising its design Yilgarn - Deception Iron Ore Deposit Solomon Stage 2 area (about 70km north of Tom of the first stage Plant and anticipates construction to commence by Q3 2012, with product coming into Price) and the Western Hub (west of Solomon) in the Cliffs Asia Pacific Iron Ore Pty Ltd the market by Q4 2013. Following successful results Pilbara. FMG reports that to date, Solomon Stage 2 Cliffs is proposing to develop an open-cut iron ore from the first stage Commercial Plant, construction has identified resources of 1.1 billion tonnes, with a mine at the Deception Deposit, located approximately 150km north of Southern Cross. The new mine will of the second stage Commercial Plant is expected to target of 2 billion tonnes, comprising channel iron, commence by mid 2016. bedded Brockman and detritals iron deposits. Start- be integrated into Cliffs existing iron ore operations up production from Solomon Stage 2 of 20Mtpa is at Koolyanobbing. The Deception Deposit contains an Expenditure: $273m. estimated 9.2Mt of iron ore and is expected to have scheduled for late 2014/early 2015, with aspirations Employment: Construction: 380; Operation: 125 a mine life of around 8 years. Subject to obtaining to expand to around 200Mtpa by 2017 (100Mtpa from all government approvals, mine development Solomon Stage 2 and 100Mtpa from Western Hub). is scheduled to commence from 2012 with first Uranium The project comprises mines, a new 250km railway production expected from 2014. linking Solomon Stage 2 mines to berths and ship Northern Goldfields - Yeelirrie - loading facilities in the proposed 350Mtpa multi-user Expenditure: $35m. Yeelirrie Uranium port at Anketell. BHP Billiton Yeelirrie Development Oil & Gas Developments Expenditure: $7b. Company Pty Ltd BHP Billiton proposes to develop the Yeelirrie Employment: Construction: 4800; Operation: 2650 Carnarvon Basin - Pluto Project Expansion Woodside Energy Uranium Project in the North-eastern Goldfields, Pilbara - Outer Harbour Development, near Wiluna. The proposal entails open cut mining The Pluto LNG Park provides the opportunity to Port Hedland of shallow deposits of uranium ore, treatment in a consider both equity gas development and third plant to be established at the site, and development BHP Billiton Iron Ore Pty Ltd party gas supply at the site. The foundation project of associated infrastructure. The project will produce The proposed Outer Harbour Development, an iron investment in support infrastructure enables a up to 3,500tpa uranium oxide concentrate over about ore export facility at Port Hedland, will include a significantly lower cost and de-risked expansion 30 years. The uranium oxide will be transported opportunity. As a brownfield development Pluto four-kilometre jetty, eight-berth wharf, stockyards, to South Australia by road for export to overseas expansion will require a much smaller construction rail loop and associated facilities. BHP Billiton Iron markets. The formal environmental impact workforce compared to a greenfield development. Ore’s investment in the proposed Outer Harbour assessment process was initiated in 2009 and the Woodside has completed front-end engineering Development remains subject to market conditions, project Environmental Scoping Document was and design (FEED) for the next two onshore trains. approved in June 2010. The project is ongoing. the receipt of all required government approvals and Discussions continue with third parties regarding the Employment: Construction: 700; Operation: 300 BHP Billiton Board approval. potential to process Carnarvon Basin gas through additional trains at Pluto. Pilbara - Roy Hill Iron Ore Mine & Infrastructure Hancock Prospecting Pty Ltd Carnarvon Offshore Basin - Macedon Domestic Gas Project Hancock Prospecting is developing the Roy Hill iron ore project located 105km north east of Newman. BHP Billiton Petroleum (Australia) This project is expected to come into production in Pty Limited 2014 and will produce 55Mtpa of iron ore for The Macedon gas field, about 90km west of Onslow, 20 years following ramp-up. The project includes was discovered in 1992 during drilling of the West mine development, mine processing infrastructure, a Muiron-3 well and is estimated to contain a gas new 340km railway, and significant new port facilities resource of up to 600bcf. BHP Billiton Petroleum at Port Hedlands inner harbour. Environmental (Australia) Pty Ltd and Apache Energy Limited are currently progressing the necessary approvals approval for Roy Hill mine Stage 1 was received for a domestic gas project for Western Australia. in December 2009 and environmental approval The development will involve a number of sub- for Stage 2 was received in March 2010. All key sea gas wells connected to the gas field, offshore approvals have been secured and major project and onshore wet gas pipelines, an onshore gas works are expected to commence in 2012. processing plant 15km southwest of Onslow, and Expenditure: $7b. a sales gas pipeline connected to the Dampier-to- Bunbury Natural Gas Pipeline. Daily production is Employment: Construction: 1500; Operation: 750 expected to be in the order of 200TJ. Construction has Pilbara - West Pilbara Iron Ore Project started in Q3 2011, with gas production to commence API Management Pty Ltd in early 2013. Expenditure: $1b. The Australian Premium Iron Joint Venture is proposing to develop the West Pilbara Iron Ore Employment: Construction: 300 Project. Stage 1 of the project is based on the Pilbara - Wheatstone LNG Development production of 30Mtpa of direct shipping iron ore Chevron Australia Pty Ltd from its Red Hill and Mt Stuart mine sites located 35-80km south west of Pannawonica. The ore will Chevron is investigating the feasibility of an LNG be transported by a new heavy haul railway for project based on its Wheatstone and Iago gas fields, export via the proposed multi-user 350Mtpa port at to be located at Ashburton North, near Onslow. The project will also process gas from sub-economic Anketell. Subject to the successful completion of third party fields in the Carnarvon Basin. Chevron feasibility and environmental studies, and receipt Prospect Magazine is also entered FEED (Front End Engineering Design) in July of government regulatory approvals, the company 2009 with a Final Investment Decision expected in available to view online. anticipates that the first shipment of ore will occur in the second half of 2011. Gas to market is scheduled late 2014/early 2015. The EPA provided its report and for 2016. The project will initially have two LNG trains Visit recommendations for the mine and rail proposal to with an 8.9Mtpa capacity, expandable to five, and a the Minister in August 2011. 250 million cubic feet per day domestic gas plant. www.dsd.wa.gov.au/Prospect Expenditure: $4b. Expenditure: $23b. Employment: Construction: 2000; Operation: 700 Employment: Construction: 5000; Operation: 400

All conversions from foreign currencies were calculated at the latest available rate. 31 Visit us online Significant resource projects in Western Australia

Prospect can be downloaded free of Western Australia continues to lead the way as Australia’s premier resources charge from the Internet by visiting the investment destination. There are currently more than A$180 billion worth of website of the Department of Mines and projects either committed or under consideration for the State during the next Petroleum at: www.dmp.wa.gov.au few years. These will create more than 50,000 construction jobs and more than 15,000 permanent jobs.

All conversions from foreign currencies were calculated at the latest available rate.

Project Value Employment Prospect (estimated A$m) Construction Permanent Alumina Subscription/Change of address BHP Billiton Worsley Alumina - Refinery Expansion 3000 1500 200 ABN: 69 410 35 356 Sub Total 3000 1500 200 Iron and Steel Asia Iron - Extension Hill Magnetite Mine 2000 1000 350 Australian Premium Iron Joint Venture - Iron Ore Mine 4000 2000 700 BHP Billiton Iron Ore - Inner Harbour Expansion 2300 - - Name: BHP Billiton Iron Ore - Jimblebar Mine Expansion 3400 - - BHP Billiton Iron Ore - Outer Harbour Development, Port - - - Hedland BHP Billiton Iron Ore - Port Blending and Rail Yard z 1700 - - Facilities CITIC Pacific - Cape Preston Mine & Processing Projects 5200 4000 500 Cliffs Asia Pacific Iron Ore - Koolyanobbing Iron Ore Position: 320 - - Upgrade Crosslands Resources - Jack Hills Stage 2 Hematite Mine 2000 450 350 Fortescue Metals Group - Central Pilbara Project (Solomon 7000 4800 2650 Organisation: Stage 2 and Western Hub) Fortescue Metals Group - Mine, Rail and Port Project - 2500 3200 Fortescue Metals Group - Solomon Project 4000 1000 3000

Address: Grange Resources - Southdown Magnetite Mine 2570 2000 600 Hancock Prospecting - Iron Ore Mine - Roy Hill 7000 1500 750 Karara Iron Ore Project 1975 1500 500 MCC - Cape Lambert Iron Ore Project 3700 3000 1000 z Rio Tinto Iron Ore - Hope Downs 4 Iron Ore Mine 1600 2100 720 Sub Total 48765 25850 14320 Lithium Type of business: Galaxy Resources - Mt Cattlin Lithium Project 75 100 75 Sub Total 75 100 75 Nickel/Cobalt Phone number: Ravensthorpe Nickel Operation 190 200 500 Sub Total 190 200 500 Oil, Gas and Condensate Email BHP Billiton - Macedon 1000 300 - Browse LNG Precinct 30000 6000 400 Please tick the appropriate box Chevron - Wheatstone LNG 23000 5000 400 Please add me to your mailing list to receive my one Gorgon Joint Venture Gas Processing Project 43000 5500 300 year subscription of the Prospect magazine. North Rankin Redevelopment 5000 - - one year $12 (incl. GST) @ Woodside - Pluto LNG Plant 14900 5000 300 My cheque, made out to the Department of Mines and Woodside Energy - Cossack Wanaea Lambert Hermes 1800 - - Petroleum, is enclosed OR please debit the amount to (CWLH) Redevelopment Project my credit card using the following details: Sub Total 118700 21800 1400 Type of card: Visa Bankcard Mastercard Other AngloGold Ashanti/Independence Group - Tropicana Gold 700 700 400 Project Ashburton North Strategic Industrial Area - - - Expiry date BHP Billiton - Yeelirrie Uranium - 700 300 This form will become a tax invoice for GST purposes when payment is made. Burrup Nitrates - Ammonium Nitrate 600 600 65 Change of address (please make changes required on one of your old labels). CSBP - Kwinana Ammonium Nitrate Facility Expansion 550 300 10 Please photocopy or cut coupon and mail to: Lignor Ltd - Mirambeena - Engineered Strand Lumber 273 380 125 Prospect subscriptions Oakajee Port, Rail and Industrial Estate 4000 2000 300 Information Centre Ord East Kimberley Expansion Project 506 971 - Department of Mines and Petroleum Perdaman Chemicals & Fertilisers - Coal-to-Urea Plant 3800 2000 200 Mineral House, 100 Plain Street Windimurra Vanadium Project - Vanadium Pentoxide Mine 600 - 130 East Perth, Western Australia 6004 and Processing Plant Sub Total 11029 7651 1530 TOTAL 181759 57101 18025 k e e r C

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o e e t J E s a r d H n e n d p p n /

l D e l M i i R e l l

a M a s t a i a l o e p p l Y r a i e a U

P a a n f o p p G i e V

p S B n s

s t T

g

d

w g

b s o r n a g

a n r g P t C / o b a M e u

g n g a a n H n i i l H

i

o U e g d / n / a P U c s l s p m

c

B l i R o l d c / s a i s e d i E i l n W i r i l i t d

f T e f e n i t e o L e d O

O i n a G c c S t f a n n s w

a O M g r s W o y o l l i g a A a i i r s i r o r o Y a R e l C r Y l o R P S P

P I G O O P T e d r d o F i a g 4 E y a n

e t N R n r P b I i

Project Value Employment a n r S r A t A A d

l

e t e n h t a g d t s i o s r k n S e i a a

o e o n n T d d i P W

a (estimated A$m) Construction Permanent N l W o n a M ) F o a n

l n i S K n l d ) g w l r ) L a e n l l d o a n e r l l t i a O w h

Alumina o H h e t w a

e s t o t t H B

n e o

W r i h u e s m h l s s o M

o m a o s m

y a

y m

y

P Y s S t r n

l y s a

BHP Billiton Worsley Alumina - Refinery Expansion 3000 1500 200 a o t a o s r e l a S a i a l ( r i l

m w r

u d a r l r m a r u a i t L u o

o

i n n i o ( l i Z i s a

( c A e M o n

c e – g u i u i s R e n Sub Total 3000 1500 200 o a R e e d d A N T r a p t r o P E o r n d I I B S S U P N n W I a l

Iron and Steel M d e H

t o r

Asia Iron - Extension Hill Magnetite Mine 2000 1000 350 r o o o t d P a n g i a t r Australian Premium Iron Joint Venture - Iron Ore Mine 4000 2000 700 e s a n i e b k i r h M y v t P v e p

n e r n I k e t n n a

BHP Billiton Iron Ore - Inner Harbour Expansion 2300 - - o i a s s l Z a N

i o a B c M e e u J d n s E i e

l y o C r L

n e U

BHP Billiton Iron Ore - Jimblebar Mine Expansion 3400 - - S a R k

o n i n e l e m e n e c e e r o r g a n l c i u n h C y a o

BHP Billiton Iron Ore - Outer Harbour Development, Port r

l T a l C S S P

m

- - - a

R r i i n

t B e h u T m

Hedland n d

e r n r i o a a r d W y r V l e T l

r c t u u d a e a y s T n

G F B a H C a BHP Billiton Iron Ore - Port Blending and Rail Yard t n

E t s r a S

r s

1700 - - a e t e b e n l E s t Facilities n o t m e W i a o r a m L s W b o B a p b l a y o i r m k o e o P s CITIC Pacific - Cape Preston Mine & Processing Projects 5200 4000 500 2 m r o

o i a i t d d S o t r u r r n d S B a c l e i a u m a e C i v

P b V i H k s p P

m l n a

Cliffs Asia Pacific Iron Ore - Koolyanobbing Iron Ore d – s R e h k r Z

A t n a a c

e y a s y r

320 - - 4 u a k e o h

d l a l u D e P t g o r l

e r n r s r n

Upgrade k B I h t s B S y h e

o a e

c a r r l c a c k h i v o i e N l w s m c e C i p I n n s b

R o

k o t r e B n S r l n l c e r r m e t Crosslands Resources - Jack Hills Stage 2 Hematite Mine 2000 450 350 l Z o G o a o i r a e a d b r N S d e W h B L l n W u B i

L b l u

o S e F n m D / p Fortescue Metals Group - Central Pilbara Project (Solomon m I o a m a a

C r m g

L 7000 4800 2650 k r

C w a a u T o e 5 o

Stage 2 and Western Hub) b N r l p d i C r G E

a a P P n

S C t B Z

s P

Fortescue Metals Group - Mine, Rail and Port Project - 2500 3200 N r

o i I 0 e l d n l l l s i n i n l e i H u t u t

r h Fortescue Metals Group - Solomon Project 4000 1000 3000 e o M i e k

h i W d n t F r

n r h a A t e p n o i R t u u Grange Resources - Southdown Magnetite Mine 2570 2000 600 u N r s o

r r M e e S e r u

r h o B e d c r F n s t

Hancock Prospecting - Iron Ore Mine - Roy Hill 7000 1500 750 k d e e a e l n s g e F e e r e g p L C M s e

Karara Iron Ore Project 1975 1500 500 e e G G t L a t o l e e l a N N o a b G D r r

e L L

t o S i

t k a

r g x r t r n o R e V g r e n MCC - Cape Lambert Iron Ore Project 3700 3000 1000 a k

t

e i j e e n e c i S u e A b p r l l m A e u p b a r d u C W n P m m s i B

m e m t d l a s a a i i n N r a a a e

Rio Tinto Iron Ore - Hope Downs 4 Iron Ore Mine 1600 2100 720 c r o L v o i a D L M n r e D a r e i s C e u a r t m t u b e s n g D o l u e t u i g S e m e a o a e

H a P t M J s t d A x n Sub Total 48765 25850 14320 S

l

m t r n n a M u a E s e o a s a t e u W e H e P M n W r W k Lithium M g G n w E s o a u r g r o f l h e u f a e t b e s o a l 0

Galaxy Resources - Mt Cattlin Lithium Project 75 100 75 e r e S b g S d 0 i e s u r t a n 1 s u n P i i P a e E / v l e o o l r t C Sub Total h

75 100 75 e e R t s o m c a i h n u e P t a t C e k i

r o o h n u a s A o a P

C h S

o o e / u C n

l n e G a p i x l x n e o

Nickel/Cobalt T S i n o s e e y

S p y p n l r y p e h s i D p t a r a

w i e w t O S r 5 n r M e A a d i C d s d l o i 7 a l k o P e Ravensthorpe Nickel Operation 190 200 500 o T e e n o m o l l e p S W a l i G a / G a e d R n r B r

C 2 o k a Sub Total 190 200 500 h t x c o i r M s o o o D e D b 1 r N t m l e Oil, Gas and Condensate n 0 a e o r 5 s t m r 0 d r k o a o l e c i Y t b o W /

BHP Billiton - Macedon 1000 300 - r K

s R o 2 m o –

a C t l

h e

e x p a

c A l P

K o T y E u r a Browse LNG Precinct 30000 6000 400 c l c s E T i s l

S e u / a h h S t W 5 t n o M r u i 2 N h e o s o k t Chevron - Wheatstone LNG 23000 5000 400 I l n n a S

n N c

a o a / a N t

s r G E o S r s y R h

t N g t e r l E l r C

a

w L a

Gorgon Joint Venture Gas Processing Project 43000 5500 300 d

I e o e o s S n

l e i d k N h l o s o

I

n a c l w a

c F l n

n o W o o C

s t e l w o O

E North Rankin Redevelopment 5000 - - s a t R s n s

o 0 t n

r r i l e n P u U

e a l r u

d r i a d s e k

L e O a b s v n y a B i u g o M l

r h r h r B B t a r a s n o l a e i

Woodside - Pluto LNG Plant 14900 5000 300 T s s t E r y a n

i

e W h y t n S N t e A n e B a I r n s m

o a C

i o N X

l i a e n d C k M N h u o A d h e D S t t M W r / Woodside Energy - Cossack Wanaea Lambert Hermes J c o s d r u u H W a l J a a n o 1800 - - o y T i P l l — a L S G M a a (CWLH) Redevelopment Project a s e l r H O R a r l l i

y t H e e r l S E w n s U A l

s h o a u T o T o e r E C t A C A t R o

Sub Total 118700 21800 1400 C

t R U l R u h r A r a r A b

i a t s

l R E e S l y t n p

l N l N a s G o e S

o i A Other a g C

r O o / e r c I o a a s E H n o L C w m n W R E u o L T r L G c n o I y I U r h r a o AngloGold Ashanti/Independence Group - Tropicana Gold A e t i o T l r e W M Y R P I

700 700 400 C

k j C d O G U 0 T o c m o a

Project i r 1 r P h a N D r N

t h b p A t m t E E r i N p o d u $ a I e P N

a a M c O h X t n N n Ashburton North Strategic Industrial Area - - - S n N P r

e a e E A s l

O a e W o e B H L l

L L l i M r O i T A E y BHP Billiton - Yeelirrie Uranium - 700 300 s h

P e t o H l T I V g c e r g a R I n

i S

l i e A a E

z o l S E P h b e n e s t d o D T o e

n u v P Burrup Nitrates - Ammonium Nitrate 600 600 65 e r i

R E A h a o N c C A h e y R t R k

e n R J a l A r g E S c P

e A k o o a

M s R a o l c n D E I r r i t w G t c H

CSBP - Kwinana Ammonium Nitrate Facility Expansion 550 300 10 B o

G a a s n C E S r a n d T v L n e I N

U N a N n o c e r h

p t a a V v n y N W O i e e Y u

h a I b

Lignor Ltd - Mirambeena - Engineered Strand Lumber 273 380 125 N A t g V e L o s b T S C R s n E T D o l u m

L T

a r n

x i n N n o C l e R C U C d N T l t E

e e l E l I Oakajee Port, Rail and Industrial Estate 4000 2000 300 g E s e s h D e D i P f g n i r J A o g f n

a E a a w u n o O c M / L o R R o R O l E

S l C U R Ord East Kimberley Expansion Project 506 971 - R R e P D s e f

N C P p I Y

l N

F a L R A N a C O

e A e

w d O Perdaman Chemicals & Fertilisers - Coal-to-Urea Plant 3800 2000 200 I

r W o T e r h l e R E r U E v a N A a N G L a d H O E I S b R L k C

Windimurra Vanadium Project - Vanadium Pentoxide Mine A S y

T

T s

t

: V t E 600 - 130 R O S E s R A P D

and Processing Plant l R s

B r E D E E A e

R

P T b O N A

O U N o T

Sub Total 11029 7651 1530 a O P w e D l I I S S j E L t C E h I L S I C T c C T TOTAL 181759 57101 18025 T O E E a M e r t N

S j J P J A 0

o o 2 r R R O R O R O N A I P P O P P $ N M Sunrise Troubadour

Major Resource Projects — March 2012 Kelp Deep Jahal Kuda Tasi Laminaria Corallina INSET A Hill 50 Project labels: Krill Chudditch Balline Grt Laminaria East Elang–Kakatua Tallering Peak PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Bluff 0 50 km Port Gregory Grt Yogi Buller Hingkip OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Bayu–Undan Alinta Wind Farm Bilberatha Hill Oakajee Gullewa Au Cu Golden Grove Cu Zn Pb PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Geraldton Eradu Pig Iron Minjar – $A20 MILLION ARE SHOWN IN RED Oliver Audacious Narngulu synthetic rutile Mount Horner Mt Mulgine Tenacious Katandra Corybas Koolanooka/Midwest PROJECTS UNDER CARE AND MAINTENANCE ARE SHOWN IN PURPLE Cash–Maple Jabiru Geraldton brick Dongara Irwin River Eremia Mungada Swan Challis–Cassini Hovea Centauri 1 Puffin Vesta Apium Karara Xyris Koolanooka South Magnetite Range Skua Talbot Xyris South Dongara Mt Gibson Swallow Swift North Jingemia Tarantula Three Springs Tlc Padthaway Beharra Springs Extension Hill Montara–Bilyara Cliff Head Crux Tahbilk Evandra Beharra Springs North Mt Gibson Prometheus/Rubicon Petrel Redback South Eneabba Argus Libra Woodada Eneabba Frigate Tern Central West Coolimba Warro Echuca Shoals Badgingarra Wind Farm Kronos Mimia Cornea Cooljarloo North Ichthys West Moora Chert Emu Downs Wind Farm Torosa Ichthys Prelude Cape Bougainville Blacktip Cooljarloo Burnside Kwinana–Rockingham Cataby Brecknock Yerecoin Alumina refinery Calliance Gwydion Red Gully Mitchell Plateau Turtle Ammonium nitrate Gingin West Oil refinery Wandoo Bindoon North Cement and lime Neerabup/NewGen Chlor alkali Wesbeam timber Chandala synthetic rutile Ord irrigation Desalination Malaga brick expansion Middle Swan brick Wyndham Fused alumina Caversham tile Midland brick PERTH Ord irrigation Fused zirconia Airport brick Cockatoo Island LNG Fremantle Armadale brick Sorby Hills Pb Zn Cu G Irvine Island Bulk terminal Cardup brick Koolan Island LPG Lake Argyle hydro Nickel refinery Pinjarra Al Keysbrook Speewah V Ti Fe Power station Wagerup Al Huntly Willowdale Sparks Kln Speewah Fl Southern Seawater Boddington Au Cu Sodium cyanide desalination Oobagooma Ridges Titanium pigment Marradong Argyle Chlor alkali Saddleback Point Torment Zirconia Silicon smelter Kemerton Sisd Point Torment Smoke Creek / Venus Titanium pigment Worsley Al Bluewaters 1-2 Derby Collie Lloyd Australind titanium pigment Browse LNG Precinct Boundary West Terrace Savannah Bunbury Muja Ewington Ellendale Wespine timber Collie–Shotts urea Sundown Dardanup Blina Copernicus Wesfi timber Gwindinup Premier Panton Pt Pd Wonnerup South Happy Valley Muja timber Broome Ungani Vasse Tutunup Muja South Duchess–Paradise Greenbushes Li Ta Whicher Range Tutunup South Koongie Park Zn Cu Pb Manjimup Timber Jangardup South Pictor East Kapok West – Lennard Shelf Pb Zn Ag

SEE INSET B Admiral Bay Zn Pb (inside cover)

Brederode Coyote Alaric Scarborough

Cookes Creek W Nifty Cu Telfer Au Cu MINERAL SYMBOLS O'Callaghans W Cu Precious mineral Mesa – Ant Hill Mn Dmd Maroochydore Cu Co Yeneena Cu Lake Auld K Precious metal Kintyre Au (or as shown) Lake Mackay K Steel alloy metal Nicholas Downs Mn Ni (or as shown) Speciality metal Ti–Zr (or as shown) Davidson Creek Lake Disappointment K Base metal Robertson Range Iron Prairie Downs Zn Pb Ag Alumina Bx (or as shown) Lake MacLeod Salt Coal and lignite Cape Cuvier Butcherbird Mn Uranium Lake MacLeod Gp Abra Pb Cu Zn Industrial mineral Beyondie Construction material Processing plant Fortnum Plutonic Telecom Hill PETROLEUM SYMBOLS DeGrussa– Gas field Doolgunna Cu Au Oil field Jack Hills Wiluna Wiluna Andy Well West Jundee–Nimary West Musgrave Wingellina Oil and gas field Shark Bay Salt Murchison Gabanintha V Ti Fe Magellan Pb Matilda Radio–astronomy Significant gas discovery Meekatharra Hinkler Well observatory Lake Way Significant oil discovery Coburn Weld Range Honeymoon Well Significant oil and gas discovery Yeelirrie Mt Keith Hillview Lake Maitland Processing plant Burnakura Big Bell Nowthanna Gidgee Bronzewing Oil / gas pipeline, operating Cliffs Great Fingall Barrambie V Ti Fe Cosmos Yakabindie Moolart Well – Duketon Oil / gas pipeline, proposed Leinster Lawlers MgCO3 Lawlers Darlot Garden Well INFRASTRUCTURE SEE Victory Bore V Fe Agnew Waterloo Murrin Murrin Thatcher Soak Marshall Pool Mt Windarra Power plant INSET A Sinclair Bentley Windimurra Jaguar Zn Cu Pb Laverton/Crescent Radio astronomy Zn Pb Cu Granny Smith – Wallaby V Fe Mt Forrest King of Irrigation / water / desalination Cashmere Downs the Hills Brightstar Mt Weld Phos Port Laverton/Navigator Cyclone Murrin MgCO3 Mikado Mt Bevan Sons of Mt Weld REE Mt Mason Gwalia Murrin Tropicana COMMODITIES Mt Ida / GME Fortitude Ag...... Silver Deception Lake Giles Highway Sunrise Dam Red October Al...... Alumina Die Hardy Goongarrie Scotia Jump Up Dam Au...... Gold Windarling Canegrass Excelsior Mulga Rock Carnegie Paddington Bx...... Bauxite Range Siberia South Laverton – Carosue Dam Co...... Cobalt Mt Jackson Lindsays Find Ponton Carina Cawse Black Swan Cr...... Chromium Kundana – Kundana East Frogs Leg Kanowna Belle Cu...... Copper White Foil Superpit Kalgoorlie nickel smelter Dmd...... Diamond Koolyanobbing Navajo Chief Blair South Kal Mt Monger Fe...... Iron Edna Bullabulling Coolgardie–Redemption Aldiss Randalls Fl...... Fluorite May Nepean Kambalda nickel concentrator Mt Marion Li Ta Mica Beta–Hunt Gp...... Gypsum Marvel Loch Long–Victor Grt...... Garnet Carnilya Hill Bald Hill Ta Nevoria Otter–Juan K...... Potassium Collgar St Ives Mt Caudan Wattle Dam Lanfranchi Kln...... Kaolin PERTH Wind Farm Spargoville Bounty Trident Li...... Lithium Mariners Mt Thirsty Eucla West LNG...... Liquefied natural gas Flying Fox Maggie Hays Central LPG...... Liquefied petroleum gas Norseman Spotted Quoll Lounge Lizard MgCO3...Magnesite Mica...... Mica Salmon Gums Mn...... Manganese Ni...... Nickel Pb...... Lead Scaddan Pd...... Palladium Mt Cattlin Li Ta Ravensthorpe 0 100 200 300 400 Phos...... Phosphate Phillips River – Trilogy Au Cu Pt...... Platinum Esperance REE...... Rare earth elements Kilometres Sisd...... Silica sand Ta...... Tantalum Southdown Ti...... Titanium Tlc...... Talc Mirambeena timber V...... Vanadium Albany wind farm Albany W...... Tungsten Zn...... Zinc Zr...... Zirconium