WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE

July 2014 – August 2014 $3 (inc GST)

THE GOLDEN TOUCH

Tropicana gold mine officially open Print post approved PP 665002/00062 DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment Level 6, 1 Adelaide Terrace East Perth, Western Australia 6004 • AUSTRALIA Tel: +61 8 9222 0555 • Fax: +61 8 9222 0505 Email: [email protected] • www.dsd.wa.gov.au

INTERNATIONAL OFFICES Europe — London Western Australian Government - European Office 5th floor, The Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 Email: [email protected] • www.wago.co.uk With Western Australia’s annual iron ore sales forecast to rise to 777 million tonnes India — Mumbai by 2017–18, the need for an additional export capacity to ship the commodity out Western Australian Trade Office 93 Jolly Maker Chambers No 2 of the State is clearer than ever. 9th floor, Nariman Point • Mumbai 400 021 • INDIA Therefore, it was with great pleasure that I, on behalf of the Western Australian Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Email: [email protected] • www.watoindia.in Government, signed a native title agreement with the Ngarluma people of the Pilbara over land intended for the Anketell Port project (story page 3). Located 30km Indonesia — Jakarta east of Karratha, the proposed multi-user deep water port and strategic industrial Western Australia Trade Office Level 48, Wisma 46, Jalan Jenderal Sudirman Kavling 1 area will complement Port Hedland and Dampier ports, and have capacity to export Jakarta Pusat 10220 • INDONESIA 350 million tonnes per annum. Tel: +62 21 574 8834 • Fax: +62 21 574 8888 Under such agreements it is important that the interests of Indigenous groups are Email: [email protected] protected, and I’m pleased that the opportunities provided by the Anketell project Japan — Tokyo will extend to the Ngarluma people. Western Australian Government Office 14th floor, Imperial Tower During April, I travelled to China to meet senior representatives from Chinese 1-1-1 Uchisaiwai-cho Chiyoda-ku businesses with interests in Western Australia and was encouraged by the Tokyo 100-0011 • JAPAN productive discussions we had (story page 9). Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 Email: [email protected] • www.wajapan.net

Mines and Petroleum Minister Bill Marmion was similarly busy, embarking on trips Japan — Kobe to China and Japan (stories pages 2 and 6), where he spent five days travelling with Western Australian Government Office Department of Mines and Petroleum Director General Richard Sellers, flying the flag 6th floor, Golden Sun Building 4-3-6 Nakayamate-dori for Western Australia. Chuo-Ku • Kobe 650-0004 • JAPAN Tel: +81 78 242 7705 • Fax: +81 78 242 7707 The confirmation in March that a long-term finance deal – the biggest in world mining Email: [email protected] • www.wajapan.net history – had been finalised for the Roy Hill project (story page 13) is a credit to Middle East — Dubai everyone involved. This announcement, together with the opening of the Tropicana Western Australian Trade Office gold mine around the same time (story page 4), points to a resources sector that still 106, Emarat Atrium has much to offer. PO Box 58007 • Dubai • UNITED ARAB EMIRATES Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Colin Barnett Email: [email protected] • www.wato.ae PREMIER OF WESTERN AUSTRALIA & MINISTER FOR STATE DEVELOPMENT People’s Republic of China — Shanghai Western Australian Trade and Investment Office Bill Marmion Level 22 • CITIC Square MINISTER FOR MINES AND PETROLEUM 1168 Nanjing Road West Shanghai 200041 • PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected] • www.westernaustralia.cn

People’s Republic of China — Hangzhou Western Australian Trade and Investment Promotion ISSN 1037-4590 Hangzhou Representative Office Room 1705 • World Trade Centre Plaza Prospect Zhejiang World Trade Centre Western Australian Prospect magazine is published quarterly by the 122 Shuguang Road Western Australian Government’s Department of Mines and Petroleum (DMP) Hangzhou 310007 • PEOPLE’S REPUBLIC OF CHINA and Department of State Development (DSD). Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 DSD Editorial management: Rick Bryant, DSD Communications and Marketing Division. Email: [email protected] • www.westernaustralia.cn Tel: +61 08 9222 0417 • Fax: +61 08 9222 0505 Singapore DMP Editorial management: Peter W. Lewis, DMP Communications and Marketing Division. Western Australian Trade and Investment Office Tel: +61 08 9222 3572 • Fax: +61 08 9222 3862 6 Temasek Boulevard #20-02 Subscriptions: Gerard O’Neill. Tel: +61 08 9222 3821 • Email: [email protected] Suntec Tower Four

Disclaimer Singapore 038986 • SINGAPORE 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 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 Email: [email protected] 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 Unit 702, 7th floor, Kwanghwamoon Building Cover photo: The Tropicana processing plant. © Philip Gostelow 211 Sejongno, Jongno-gu, Seoul, 110-730, KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 121 Email: [email protected] • www.westernaustralia.or.kr

Scan this QR code to view links to all the department’s publications In this issue

02 03 04

05 08 22

02 Flying the flag in China 05 Japanese Prime Minister visits Mines and Petroleum Minister Bill Marmion and DMP Director General Richard Sellers championed the WA cause during a the Pilbara highly successful mission to China. Premier Colin Barnett has welcomed Japanese Prime Minister Shinzo Abe to Western Australia in a visit that has highlighted the 03 Historic land use agreement ongoing ties between Japan and Western Australia. for Anketell 08 Agricultural opportunities The Anketell Port project has reached a major milestone with the signing of a native title agreement with the Ngarluma people in the spotlight of the Pilbara. The first Western Australia – China Agribusiness Cooperation Conference was attended by more than 300 delegates and 04 Mines Minister attends provided the perfect platform to expand WA’s agriculture industry. Tropicana official opening 22 Doing the right thing Some eight years after first being discovered, the Tropicana gold The second in a two-part series on the uranium mining industry mine has been officially opened. in Western Australia looks at how uranium projects in WA are progressing and some of the challenges they face.

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 The Western Australian delegation meets with representatives from China’s Ministry of Land Resources (MLR). L-R MLR Foreign Affairs Officer Fei Yue, MLR Central Geological Exploration Fund Management Center Division Director Lei Yan, Department of Mines and Petroleum (DMP) Mineral Promotion Senior Manager Gaomai Trench, MLR Director General Jiang Jianjun, WA Mines and Petroleum Minister Bill Marmion, DMP Director General Richard Sellers, Minister Marmion’s Chief of Staff Colin Edwardes and WA Trade Office Regional Director Nathan Backhouse. FLYING THE FLAG IN CHINA

The China leg of the recent north-east conversation during the team’s visit to Western Australia, and the Niujuanzi region Asia tour by Mines and Petroleum CITIC Pacific Mining. in China’s Gansu Province. Minister Bill Marmion and Department The Sino Iron project is the largest The project’s aim is to develop field of Mines and Petroleum (DMP) Director magnetite mining and processing mapping and laboratory-based geoscience General Richard Sellers was spent flying operation in Australia and promises to skills, and map production techniques. the Western Australian flag in Hong Kong. deliver significant economic benefits to “We see this relationship as incredibly Their first stop was a visit to the DMP Western Australia. important and the visit by the Minister can booth at Mines and Money Hong Kong The team received a warm welcome at only strengthen it,” Mr Sellers said. 2014, the Asia-Pacific region’s premier a meeting later that afternoon with the networking event for mining investment Ministry of Land and Resources. The Karara project was at the forefront of and capital raising. talks with Ansteel, one of China’s biggest “We always get a very good hearing at steel makers and iron ore miners. The market for liquefied natural gas the Ministry,” Mr Sellers said. (LNG) was one of the key topics when Karara is the first major magnetite the team attended an official function “We have a long relationship with its operation in the Mid West and is a at the Australian Embassy in Beijing, Director General and officers. Our joint venture between Ansteel and the day after arriving in mainland Geological Survey of Western Australia Gindalbie Metals. China’s capital. (GSWA) team meets with them regularly and we have built a strong working The final stop on the tour was a meeting “Clearly the growth in China, while not relationship over a number of years.” with the China National Offshore Oil exponential, is very steep,” Mr Sellers said. Corporation (CNOOC), the third-largest The Director General said that DMP’s national oil company in China. “As they address air pollution, they will good relationship with the Ministry have to cut back on coal or make their involved a great deal of close cooperation. “They have been active in Western coal power stations cleaner. Australia for 40-plus years,” the Director “An excellent example is our geoscience General said. “They are building their nuclear energy cooperation project with the China capability. However, the main focus to Geological Survey (CGS),” Mr Sellers said. “It was a really positive meeting where they reduce greenhouse gas emissions is to were quite bullish about further discoveries GSWA is now in the third year of a expand the use of LNG, which is good." in oil and gas.” four-year project with CGS involving The following day, the massive cooperative research based on geological Mr Sellers said the CNOOC meeting magnetite development at Cape Preston surveys in the Archean Yalgoo–Singleton ended a highly successful mission on an near Karratha was the main topic of greenstone belt in the Mid West region of appropriately optimistic note.

2 HISTORIC LAND USE

AGREEMENT FOR ANKETELL Aboriginal Corporation Ngarluma Photo:

Premier Colin Barnett, senior elder Violet Samson, Chair of the NAC Board Warren Walker, NAC CEO Paul Stenson, and senior elder Pansy Hicks.

The Western Australian Government has The agreement provides secure tenure over Ngarluma Aboriginal Corporation (NAC) signed a native title agreement with the 4,300 hectares of coastal land, where the chairman Warren Walker thanked Ngarluma people of the Pilbara, over land State Government is planning a multi-user the State Government for amending intended for the Anketell Port project. deep water port with an ultimate capacity of the port plans to preserve culturally at least 350 million tonnes per annum (Mtpa), significant areas. The Indigenous Land Use Agreement for along with an associated industrial area. the site was signed by the Premier Colin “It’s good that we’ve worked with the Barnett at a ceremony at Cleaverville, The Premier said that, once fully State to protect this land and look after it. 30km east of Karratha, in April, with operational, Anketell’s capacity of at least We’ve minimised the footprint [of the port] Traditional Owners in attendance. 350Mtpa will be more than 20 per cent so anyone can get the use of the country.” higher than total shipments out of Port “I congratulate the Ngarluma people for An Aboriginal heritage survey is currently Hedland in 2012–13. the commitment they have demonstrated underway, the findings of which will help throughout the negotiation process,” “It will be a massive boost to the State and inform and shape the final plans for the Mr Barnett said. particularly to the Karratha-Roebourne area.” port and industrial area. “This agreement offers an opportunity “During this decade, the iron ore industry NAC chief executive Paul Stenson said for the Ngarluma people to continue is reaching its maturity. I suspect that the agreement was a milestone for the their journey towards a sustainable and Anketell Port will be the last major new port Ngarluma people and the development independent future. built in the Pilbara.” of the State. “The agreement also provides further From the ceremony site, attendees could Under the terms of the agreement, certainty to a potential port builder and overlook the land intended for the port future port builders and users will be future users, and is imperative in ensuring precinct and also Dixon Island, which required to work with NAC to maximise that this site can be developed as quickly was removed from port plans due to its employment, training and contracting as required.” significance to the Ngarluma people. opportunities for Ngarluma people.

Master plan for Anketell Port revealed The Western Australian Government has released the Anketell The Master Plan includes provisions for a substantial Port Master Plan, unveiling details for a major, multi-user and infrastructure corridor and more than 800 hectares of industrial multi-commodity deep water port in the Pilbara. land to support port activities and future mining operations. “Development of Anketell Port will help to unlock the potential The Master Plan has been jointly developed by the of the West Pilbara by aiding further development of the State’s Department of State Development and the Dampier Port natural resources,” Mr Barnett said. Authority, who will continue to work collaboratively as the “This Master Plan is a clear guide for proponents who are project progresses. seeking additional routes to bring ore to market.” To view the Master Plan, go to www.dsd.wa.gov.au/8381.aspx

3 MINES MINISTER ATTENDS TROPICANA OFFICIAL OPENING Photo: Tony McDonough Tony Photo:

AngloGold Ashanti Chairman Sipho Pityana, AGA Independent Non-Executive Director Rod Ruston, Independence Group Non-Executive Chairman Peter Bilbe and Minister Bill Marmion with the plaque commemorating the official opening of Tropicana on March 6, 2014.

Mines and Petroleum Minister Bill that 2014 will be a good year for the drilling costs are offered to explorers who Marmion recently attended the official mining industry,” he said. have been successful in the competitive opening of the remote AngloGold Ashanti application process. AngloGold holds a 70 per cent stake and Independence Group Tropicana in the project, alongside Independence The State Government’s commitment gold mine, 330km east-northeast of which had pegged the ground when Kalgoorlie-Boulder. to explorers under the EIS is expected it listed on the Australian Securities to reach approximately A$130 million by After its discovery in 2005, it took eight Exchange in 2002. 2016–17. years before Tropicana poured its first The project has been a successful gold last September. Co-funding is capped at A$150,000 recipient of the State Government’s for general multi-hole applications, The A$845 million project employs 450 Exploration Incentive Scheme (EIS) A$200,000 for a single deep hole fly-in, fly-out workers and should produce Co-funded Drilling Program. application and A$30,000 for a 500,000oz this year, ranking among the “The program provides incentives to drill prospector application. top five producing mines in Australia. in underexplored areas to ensure the Established five years ago, the Minister Bill Marmion hailed the Tropicana continued economic prosperity of the competitive program offers two rounds mine as Australia's most significant State’s resources industry, particularly in of co-funding a year and, besides gold discovery in a decade during the the current financial environment,” success at East Tropicana, has already official opening. Mr Marmion said. assisted various discoveries, including “I am hoping the fall in the Australian Under the Co-funded Drilling Program the Oxley potash, Nova nickel, and dollar and gold price picking up mean refunds of up to 50 per cent of direct Handpump gold deposits.

4 Photos: Photos: Rio Tinto

Rio Tinto chief executive Sam Walsh, Prime Minister Tony Abbott, Japanese Prime Minister Shinzo Abe, Premier Colin Barnett, and Rio Tinto Iron Ore chief executive Andrew Harding at the West Angelas mine. JAPANESE PRIME MINISTER VISITS THE PILBARA

Western Australian Premier Colin Barnett River joint venture currently working to Japan Australia LNG (MIMI) holds welcomed Japanese Prime Minister expand the capacity of West Angelas from a one sixth share in the North West Shinzo Abe and his wife, Mrs Akie Abe, 29 million to 35 million tonnes per year.” Shelf project. MIMI is a joint venture to Western Australia for the first time in between Mitsubishi Corporation and The West Angelas expansion represents an July, celebrating Japan’s long-standing investment of $640 million ($US599 million) Mitsui & Co. economic ties with the State. and will create around 290 construction The relationship between Western Mr Abe, Australian Prime Minister Tony jobs and 200 new operational jobs. The Australia and Japan has been Abbott and Mr Barnett visited the West West Angelas mine is located approximately underpinned by a longstanding Sister Angelas iron ore mine in the Pilbara, a halfway between Newman and Tom Price. State relationship with Hyogo Prefecture, site of significant Japanese investment in The Robe River joint venture is comprised established in 1981. The Western Western Australia, owned by the Robe of Rio Tinto, Mitsui & Co, and Nippon Steel Australian Government also operates two River joint venture of Rio Tinto and two & Sumitomo Metal Corporation. trade and investment offices in Japan, major Japanese companies. Japan is Western Australia’s second one in Tokyo and one in Kobe, the capital “Japanese investment played a vital role largest export market, with exports city of Hyogo Prefecture. in helping to establish Western Australia’s totalling $22.8billion in 2013; or 48.5 per “I also expect that the Japan Australia resources industry both through its cent of Australia’s total exports to Japan. Economic Partnership Agreement between early support of the iron industry and Three quarters of the State’s LNG by Australia and Japan will create new and as a foundation customer of the North volume went to Japan in 2013, while exciting opportunities for WA, not only West Shelf liquid natural gas project,” iron ore exports rose four per cent to in minerals and energy, but especially in Mr Barnett said. 78 million tonnes. This year marks the agriculture and I enjoyed discussing those “Japan remains a very active long term 25th anniversary of the first LNG shipment sorts of opportunities with Mr Abe during investor in Western Australia, with the Robe to Japan from the North West Shelf. his time in WA,” Mr Barnett said.

5 MINISTERIAL TOUR REINFORCES TRADING RELATIONSHIPS IN NORTH ASIA

Left: Mr Shigehisa, Chairman of JGC Corporation, engages in discussion with Minister Marmion over lunch at the Ambassador’s residence. Right: Director General Sellers and Minister Marmion at the Mitsui & Co. Headquarters.

Mines and Petroleum Minister Bill other events to generate investment “They continue to look for further Marmion and Department of Mines and opportunities,” Mr Sellers said. investment opportunities and are obviously Petroleum (DMP) Director General Richard happy with the relationship.” “Sometimes in association with the mining Sellers were doing a lot more than being conference, either before or after, we’ve Mr Sellers said Mitsubishi was enthusiastic good neighbours on their recent official gone to another province or a series of about its joint venture in the Canning Basin visit to Japan and China – they were provinces to hold investment seminars. with Buru Energy and was very pleased by taking care of business. early exploration success. “Our focus is on relaying information Over five hectic days last month about investment opportunities across “Marubeni was clearly optimistic about they talked to top-level industry and Western Australia,” Mr Sellers said of government representatives during the spectrum of Western Australia's the corporation that picked up about 17 separate official occasions. mineral and energy resources. We also outline regulations, policies and how they 15 per cent of the financing of the “It’s hard to overstate the importance of can get further information – particularly Roy Hill project. the Minister making this trip early in his regarding exploration.” “Roy Hill is incredibly important to tenure,” Mr Sellers said. DMP officers travel to Japan about once a Western Australia’s iron ore industry,” “Japan and China, along with Korea, year, usually to run seminars in conjunction he said. “It’s a project worth approximately are Western Australia’s major trading with other Australian states, and to Korea A$10 billion, plus financing costs, and partners and the aim of visits such as this either annually or every second year. that level of investment is great news one is not only to build on already well for the WA economy. established relationships, but encourage The itinerary for this year’s Ministerial trip “Marubeni have put a lot of money into further investment. included meetings with senior Chinese and Japanese officials across commerce, Western Australia and they’re very keen on “We knocked on a lot of industry and industry and government. other investment opportunities here. government doors doing just that.” Mr Sellers said he was greatly encouraged by “Obviously we also promoted onshore Mr Sellers said that DMP officers travelled the upbeat and optimistic views expressed gas and uranium, and we talked about the to the three nations regularly. by Japanese corporations such as Mitsubishi different steel making additives we produce here such as vanadium, nickel, magnesium DMP’s annual target in China is the (Japan’s largest), Sojitz and Marubeni, and manganese. China Mining Conference, a Chinese and China’s national oil and gas company, Government sponsored event held in China National Offshore Oil Corporation. “It was a very positive meeting and one of Tianjin in late October or early November. the highlights of the trip.” “Sojitz is a great investor in Western “A department officer visits at least Australia and their overall mood was Optimism was also high at the Ministerial another one or two times a year for optimism,” he said. team’s next stop, the Japan Bank for

6 International Cooperation (JBIC), a policy- “The pragmatic view is that Japan is likely The Director General said JOGMEC based financial institution that conducts to keep some of its nuclear capacity. should not be underestimated and neither lending, investment and guarantee However, gas is going to be a big part of should the role played by the Ministry of operations. their energy mix well into the future.” Economy, Trade and Industry (METI). “They did a lot of behind-the-scenes Talks with the Japan Oil, Gas and Metals “METI sets resources and industry investment work on Roy Hill,” Mr Sellers said. National Corporation (JOGMEC) were portfolio policy and JOGMEC uses also fruitful and addressed the focus on that policy to look for opportunities,” The Director General said that JBIC was Australia’s eastern seaboard. Mr Sellers said. one of a number of Japanese Government and corporate institutions that pointed out “If JOGMEC is not looking as much in “METI has the equivalent of our Geological the need for a direct flight to Tokyo. Western Australia as we would like, that Survey, plus policy makers, and it works has a flow-on effect,” Mr Sellers said. with business people. “Many people told us that it would be so much easier to do business when you “It means the trading houses are less “The major resource companies in Japan can fly direct to Tokyo and not have to go likely to be looking for commodities we don’t invest in greenfields projects or new through Hong Kong or Singapore,” can provide.” developments without some oversight or Mr Sellers said. input from these two organisations, so Mr Sellers said that DMP was working on whenever we go to Japan we make sure Much of the discussion with JBIC was strategies to get JOGMEC more involved we visit them.” around energy issues that have arisen in Western Australia. because of the Fukushima disaster. Mr Sellers said that an official lunch with One such strategy was to recommend representatives of Japan’s steel mills “The expansion of coal as an option to opening a JOGMEC office in Perth. confirmed that they viewed Western meet future energy demands has its own “Perth is an important global hub for the Australia as having a competitive advantage. set of complexities and issues,” he said. resources industry. If they had an office “That could end up being good “And that’s where the opportunities in Perth I have no doubt such a presence news for stalled projects in Western arise for uranium and shale gas from would be mutually beneficial for Western Australia requiring investment capital,” Western Australia. Australia and for JOGMEC,” Mr Sellers said. Mr Sellers said.

IGU PREDICTS AUSTRALIA TO BE MAJOR GLOBAL GAS SUPPLIER Australia is poised for a rapid rise up the Mr Ferrier said the IGU had in recent “China and India have important ladder as one of the great gas supply years witnessed the growing importance environmental targets to meet and nations of the 21st century, according of Australia for the global gas market, natural gas is going to be the substitute to the International Gas Union (IGU) with the country’s emerging potential for oil and coal in this regard. – one of the world’s most influential as a global LNG exporter high among “Increased natural gas consumption energy organisations. those achievements. will also assist the energy security of “The success of Australian explorers, “Natural gas can help to address the the region as it embraces a greater producers and marketers of natural gas challenge of reducing carbon emissions,” reliance on gas while its constituents has placed the country in a prime supply he said. grapple with the issue of more or position for the future,” IGU President Mr less nuclear power as a base load Jérôme Ferrier recently said. “Sustainable energy has to be accessible energy source.” for all, while also ensuring that it is “Also, the IGU and Australia will focus provided in an efficient manner and does He said the IGU believed that natural on the need to improve the general not cause adverse environmental and gas imports into the Asia Pacific, mainly understanding of the benefits of natural gas socio-economic impacts. in the form of LNG and pipeline, will because it will remain part of the long-term continue to rise to meet this increasing world energy mix.” “Gas has a pivotal role to play in this context.” gas dependency. French-based Mr Ferrier, also Senior Vice Mr Ferrier singled out the Asia-Pacific “About two thirds of the world’s total President of Total, was speaking at the first region as the engine of growth in the LNG imports already go into the Asia- Australian Executive Committee meeting in world’s total energy demand. Pacific region and as that volume is the 83-year history of the 125-member IGU. maintained, Australia can expect to “About a third of the total increase in emerge as a key supplier,” he said. Established in 1931, IGU is the most world gas consumption is coming from effective and independent non-profit the Asia-Pacific region, and China, Australia will host the world’s largest organisation serving as the worldwide Japan, South Korea and India are the LNG event, the LNG 18 Conference and spokesperson for the gas industry. main consumers,” he said. Exhibition, in Perth in April 2016.

7 Photo: Department of Agriculture and Food Department of Photo:

WA Agriculture and Food Minister Ken Baston, Department of Agriculture and Food Director General Rob Delane, and Consul General of the People’s Republic of China Dr Huang Qinguo. AGRICULTURAL OPPORTUNITIES IN THE SPOTLIGHT

The inaugural Western Australia – China Development, the Department of Regional 2012–13 WA agrifood exports to China Agribusiness Cooperation Conference Development and the Consulate General of and Hong Kong were worth more than was held in early April and provided an the People’s Republic of China in Perth. A$1 billion. We look forward to increasing important forum for key stakeholders from that value.” Coinciding with the conference was the China and Western Australia to network, signing of Memoranda of Understanding The foundations for the MOU were laid in gain knowledge and identify key trade (MOU) by Western Australian exporters October 2013 when Premier and State and investment opportunities in the and Chinese company representatives. Development Minister Colin Barnett agricultural sector. The agreement was an integral step witnessed the signing of a cooperative With strong links already formed through towards trial shipments of live cattle from agreement with Western Australia’s Sister mineral resources trade, Western Australia the State to China. State Zhejiang Province. and China have turned their attention to As well as beef and live cattle trade, another the agricultural industry. Supported by Under the MOU, both parties have agreed to work towards clarifying Australian and industry that looks set for significant growth WA’s proven reputation as a producer of is dairy. On the back of higher levels of Chinese animal health welfare protocols, high-quality, safe food, there are numerous income and the growing acceptance of dairy paving the way for the export of avenues for agricultural investment that as a staple in the Chinese diet, there are slaughter-ready cattle from Western are still to be explored. The conference major opportunities for Western Australian Australia. Agriculture and Food Minister proved the perfect setting to investigate producers to tap into a surging market. these opportunities. Ken Baston was on hand to witness the signing of the MOU at the conference, and Located in the rich pastures of the More than 300 delegates attended the spoke with optimism about the prospects south-west of the State, WA’s dairy industry event, including some 160 representing of agricultural exports. is an efficient producer of quality fresh milk various business interests in China who and extended shelf life milk, and enjoys high were supported by provincial governments. “WA has a long and proud history of consumer confidence worldwide. As with all The areas of focus included beef, sheep, producing premium-quality, safe agricultural facets of Western Australia’s agriculture and wine, dairy, grains and fodder, horticulture, products and exporting them around the food production, this deserved reputation premium food and fisheries. world,” Mr Baston said. stems largely from the fact that the industry is free from many of the pests and diseases The conference was hosted by the “Our ability to grow more food than that are found elsewhere in the world. Department of Agriculture and Food and required by our domestic market has led to supported by the InvestWest Agribusiness producers looking to develop new markets As part of the conference, delegates Alliance, the Chamber of Commerce and overseas. In recent times, China has were invited to attend site visits to key Industry, the Australia-China Business been our number one export destination regional areas, including the South West Council, the Department of State for agriculture and food products, and in and Wheatbelt.

8 INTERNATIONAL TRADE AND INVESTMENT

KEY DEVELOPMENTS AT AUSTRALIA WEEK IN CHINA

Premier and State Development Minister Colin Barnett met a number of senior business and government figures during a visit to China in April, which coincided with the inaugural Australia Week in China. The Premier took part in a series of high- level meetings before joining Prime Minister Tony Abbott’s delegation in Shanghai. Federal Trade Minister Andrew Robb, fellow State Premiers and Chief Ministers Austrade Photo: and Australian business leaders were also Delegates networking at the Australia-China Symposium on part of the group. Tourism and Waterfront Developments. One of the biggest promotions of Australia ever held in China, Australia Oakajee project, an integrated port, The Western Australian Government has Week promoted opportunities for trade, rail and industrial estate to support the been working with its Sister State, Zhejiang, investment, tourism and education development of the resources sector in to develop a live cattle trade with China. partnerships. The event attracted more than the region. A trial shipment of 1000 head of cattle is expected to be sent to Zhejiang province. 700 representatives from 564 organisations. “I was heartened to learn of CITIC Mr Barnett met senior representatives Group’s interest in taking a lead role “Work on a trial shipment has been from Chinese businesses with significant in coordinating the Oakajee project at developed quickly over the past six months interests in Western Australia on the China’s end, and I’m optimistic that and an agreement around a trial shipment sidelines of Australia Week, including Mr we may see some progress in the was signed in Perth last month,” he said. Wu Puingai, Chairman and President medium-term,” Mr Barnett said. “We look forward to working with the Chinese Federal Government, through of the Zhongfu Group. The Shanghai- Another focus of Australia Week was Zhejiang, on the necessary approvals. based company’s subsidiary, Kimberley the opportunities for Western Australia Agricultural Investment, is working to to build on the trade and business ties “There is still a bit of work to do but develop irrigated land for sugar cultivation that already exist with China by looking Zhejiang is confident of receiving Beijing’s as part of the Ord East Kimberley outside the mining industry. approval for a trial.” Development. “The rise of China’s middle class and the The two governments are negotiating The Premier also had constructive resulting shift towards Western dietary strict export and vaccination protocols discussions with CITIC Group Chairman patterns presents significant opportunities and it is expected that extra abattoirs will Mr Chang Zhenming about CITIC’s existing for Western Australian agricultural be built in Zhejiang to accommodate the investments in Australia as well as the producers,” the Premier said. rise in numbers.

Western Australia’s Trade Office in The new office at the iconic Wisma 46 Latest news Indonesia has moved. It is now located at: building offers a more convenient location Suite 48.12-14 for business connections in Jakarta, from WA’s Level 48, Wisma 46 Jalan Jenderal including the finance and banking sectors. Sudirman Sudirman Kavling 1 Western Australia’s Regional Director in JAKARTA Pusat 10220 Indonesia Indonesia, Kellie-Jane Pritchard, heads international the team, which works closely with Western Australia’s representatives in offices agriculture and tourism.

9 Q&A WITH NATHAN BACKHOUSE – REGIONAL DIRECTOR, CHINA

for what I call ‘soft commodities’, which Prime Minister. Its effect in terms of the encompasses things like agriculture, beef, symbolism was incredibly important, and dairy, sheep, and grains. There are some what it said is that Australia is open for other areas coming to the fore which are business, we care about China, and we more related to entrepreneurism, which want to develop the Chinese market. include infrastructure; technology in a A key issue we need to address, though, whole range of areas, such as computer is getting businesses project-ready for technology, mining software, and services China, because there are some very strong technologies; and tourism and education. distinctions between the China market and And similarly, what are businesses in those in other countries. That’s why it’s your region seeking from WA? so important to have overseas offices in The key area is still resources, particularly different markets. for government and state-owned If successfully negotiated, what benefits enterprises, but that’s changing. When I could a Free Trade Agreement bring? first came here two years ago we were handling ten mining or mining-related I was working in the Department of projects to one agriculture project, but Foreign Affairs and Trade in China when now, that ratio has basically reversed. the negotiations first started in 2005 so Companies such as Kimberley Agricultural it’s been a long time in the making, and Investment, which aren’t state-owned the key thing to note when free trade Can you describe your role? enterprises, have seen new opportunities in agreements are being negotiated is that My role is similar to other regional agriculture. Areas such as beef processing, all sectors and all tariff lines are included. directors with one added difference, live cattle, even processed wheat and As minerals already have very low tariffs which is that China is WA’s largest trading noodles, were barely talked about two in the China market I don’t think the partner. In terms of key responsibilities, years ago but now represent some of major wins will come in that sector, but I the way that we break up this role is the key interests for Chinese investment. think they will come in agriculture and in first of all ministerial visits, and over the The need to source clean, green products services. I think the Free Trade Agreement last five months we’ve effectively had from Western Australia and Australia is at will be a huge benefit to Australia. one visit per month. The second area the forefront of Chinese investors’ minds. would be strategic projects, and one In your experience, how does Western example of this would be what this office What are some of the most common Australia differ to other states in the has done, together with the Department enquiries you receive about WA? development of and approach to its of Agriculture and Food, driving the Of greater importance than the enquiries business relationship with China? live cattle strategy. The third area is, we receive, I think, are the messages we I think that Western Australia is different in essence, relationship management. send about WA. I think part of the battle to other states in that we were really What that means is helping clients who is really educating people and promoting able to benefit from that first stage of want to invest in large scale projects in and marketing Western Australia as a Chinese investment in the early 2000s by WA and ensuring they carry out their multi-tiered market which is more than having such enormous iron ore deposits. due diligence and work with the right just a mining location. Of course there are Queensland is perhaps comparable as it partners to give their project the best large mining projects, but we also have has large coal and coal seam gas projects. chance of success. a massive Wheatbelt in the interior and a Other states like New South Wales and clean Mediterranean climate in the south What do you think are the key Victoria are traditionally manufacturing that offer a lot of different opportunities. opportunities for WA businesses in the bases in Australia, and while it’s difficult regions in which you operate? How important was an event like to compete with China in that area, there Opportunities for businesses obviously Australia Week in China for assisting is the potential to tap into the market for come in established sectors such as iron Australian businesses become familiar high-end manufacturing. Victoria has also ore, cement, coal for energy generation, with conditions in the country? traditionally been a large agriculture state, and LNG. They are and will continue to I think that Australia Week in China was particularly for dairy, but in the future I be, I think, the key prospects in China. a huge success because for the first time think we’ll see a much more competitive What has been added as China has it really had a ‘team Australia’ approach environment in terms of securing developed and grown wealthier is a need to the Chinese audience, led by the investment from mainland China.

10 INTERNATIONAL EXPERT BOLSTERS REFORMS

DMP staff attend workshops run by Professor Malcom Sparrow – left of DMP DG Richard Sellers.

Internationally renowned regulatory expert provide better protection for society and of law, such as red-tape reduction, and Professor Malcolm Sparrow from Harvard a better business environment.” reforms of regulatory strategy and practice. University visited Perth to conduct workshops Professor Sparrow discussed how “Professor Sparrow believes governments with Department of Mines and Petroleum traditional key performance indicators, should be vigilant and quick to spot emerging (DMP) staff on risk-based regulation. such as the number of safety inspections threats, nimble enough to organise around DMP Resources Safety Executive Director conducted each year, do not truly reflect those threats and skilful enough to suppress the Simon Ridge, who approached Professor the value of work being done to control risk. threats before they do much harm,” he said. Sparrow to visit Perth while in Australia for “Accounting for the performance of a “Ultimately, our work as a regulator should other business, said the workshops will risk control regulator is more about help the resources industry eliminate, reduce, assist with ongoing reforms to the State’s reporting how targets were chosen, mitigate, prevent or suppress a threat or harm.” resources sector. what approach was adopted for projects Professor Sparrow conducted workshops and how success was assessed,” “Professor Sparrow’s visit came at a very with regulatory staff and senior executives Mr Ridge said. opportune time for the department with our from 19 to 22 May. safety and environment legislation currently The workshops also focused on the Professor Malcolm Sparrow is a Professor of being transitioned to a best practice risk-based journey to achieving regulatory excellence the Practice of Public Management at Harvard’s regulatory framework,” Mr Ridge said. in risk control. John F. Kennedy School of Government. He is “His workshops focused on a common Professor Sparrow examined the possible faculty Chair of the School’s executive program, conundrum for regulators – how to meanings of ‘risk-based regulation’ and Strategic Management of Regulatory and simultaneously deliver regulations that explored the relationship between reforms Enforcement Agencies.

11 Photos: Lynas Corp Ltd. Lynas Photos:

Mt Weld open pit and ore stockpiles with percentage of rare earth oxides. AUSTRALIA-FRANCE RARE EARTH SYMPOSIUM PREDICTS BRIGHT FUTURE A continued spirit of cooperation between Australia and France was predicted by Minister for Mines and Petroleum, Bill Marmion, at the recent rare earth symposium. Prospect takes a look at this emerging industry and expectations of establishing processing facilities in the future.

During his opening address at the Australian- “Around 30 years ago Western Australia processing in Western Australia, and the France Rare Earth Symposium Minister supplied approximately 25 per cent of the use of rare earths in developing efficient Marmion said he believed the symposium world’s rare earths through the export of by- power supply systems. would create many positive outcomes, product monazite and xenotime, from heavy Australia presently has no facility for including the establishment of independent mineral sand mining, to Rhone Poulenc, in extracting REE for ore minerals, a very supply chains and joint venture research La Rochelle, France where it was processed specialised process involving complicated, programs to assist in the development of to produce separated rare earths.” multi-stage chemical processes that must rare earth processing in Western Australia. REE are in high demand for use in advanced be tailored to the particular REE ore type. Western Australia has Australia’s only technologies such as smartphones, LCD “So any movement to establish such operating rare earth elements (REE) mine at screens, permanent magnets, hybrid cars, a new industry is supported by the Mt Weld and shipments of ore by operator wind turbines and even defence hardware State Government as demand for REE Lynas Corporation to its processing plant in – all growing industries. Malaysia began in December 2012. continues with on-going technological “The State Government is acutely aware of developments,” Mr Marmion said. “While at this stage we only account for these growth opportunities and is actively “This is further enhanced as an opportunity two per cent of global REE resources, the supporting the developing REE industry,” considering that China, which supplies 85 known resource base continues to grow Minister Marmion said. with on-going exploration and development, per cent of the global total, has made a particularly at Browns Range and Hastings- The Department of Mines and Petroleum’s recent decision to reduce export quotas Brockman,” Mr Marmion said. (DMP) Geological Survey of Western and raise import tariffs for REE. Australia (GSWA) distributes geological “This has created global concern Western Australia is highly prospective for information on the State’s REE deposits. the discovery of other REE deposits and about the security of supply to market, has many opportunities for rare earths This Information focusses on the geological particularly for heavy REE, and therefore a exploration and research capabilities, and setting and origin of REE mineralisation, push to find new resources, and providing the establishment of processing facilities. and the application of this knowledge in new opportunities.” assessing the prospectivity of the State for “The relationship between Australia and The event was organised by the Western other REE deposits. France in this industry has successfully Australian Chamber of Minerals and worked in the past, and continues to work The symposium, held in May, also Energy (CME), Curtin University and the today,” Mr Marmion said. considered downstream rare earth French Embassy in Australia.

12 Photos: Roy Hill Roy Photos:

Construction of the Point Stanley Wharf at South West Creek in Port Hedland. FUNDING PACKAGE SEWN UP A major milestone in the development of implementation of a State Agreement, and As detailed in the March edition of Prospect the A$10 billion Roy Hill iron ore project all primary approvals are now in place.” magazine, there has been a strong focus was reached in March, with completion of on creating opportunities for local suppliers The iron ore industry is already a major a long-term funding package. during the construction phase of the Roy Hill pillar of the Western Australia economy, project, with more than A$6 billion to date The A$7.9 billion debt package involves employing thousands of workers and spent on, or committed to, local content. a consortium of 19 international banks contributing around A$4.3 billion in and five export credit agencies. Significant royalties in 2013. Western Australian businesses have support from a number of other financial been heavily involved in the building of Containing an estimated resource of institutions also underpinned the funding. several facilities, including accommodation 2.4 billion tonnes of iron ore, the mine life villages, the Ginbata airport and Premier and State Development Minister of the site has been calculated at more accompanying roads, and the recently Colin Barnett welcomed the development, than 20 years and, once completed, completed company headquarters and saying the Roy Hill project represented will be the biggest single-pit iron ore remote operations centre in Perth. a substantial vote of confidence in the mining project in Australia. It is expected future of the State’s resources sector. to deliver royalties to the State of up to First exports from the project are A$400 million a year. expected to occur in September 2015. “This is great news for workers in mining and construction and shows there are still opportunities out there despite recent reports of a slowing of growth,” he said. The Roy Hill project comprises an open pit mine, a processing plant, 344km of heavy haul railway and export facilities at Port Hedland. It is expected to generate a peak construction workforce of 3,600 workers and once operational is likely to create 2,000 permanent jobs. “With a nameplate capacity of 55 million tonnes per annum, the Roy Hill project is set to be the biggest iron ore project under construction in the world,” Mr Barnett said. “The State Government has worked closely with the project proponents to progress the Roy Hill project to this point, including the negotiation and An aerial view of construction of Roy Hill’s Port Rail Loop and Stockyard facilities.

13 PILBARA MARINE HEALTH CHECK

Left: Christmas Tree Worms on a Porites coral head off Montobello Island. Middle: Acropora Coral off Sholl Island.

Right: Coral bleaching on a Porites Coral Head off Montobello Island. CSIRO Photos:

A health and wellbeing check of World “Our research will help government The University of Western Australia’s Professor Heritage-listed reef ecosystems in the Pilbara and industry balance the environmental Shaun Collin said the study would set a region of Western Australia will provide a sustainability of the Pilbara with its baseline for future development in the Pilbara. critical baseline of marine conditions to increasing broad sector use,” CSIRO lead “This study will develop a greater understanding government, industry and researchers. scientist Dr Russ Babcock said. of the dynamics of coral and fish communities The five-year, A$12 million Pilbara Marine “Over the next five years we want to in the region, which in turn will provide us with Conservation Partnership will survey a find out everything we can about the the ecological indicators of potential human 300km swathe of coastline, including two health and makeup of the region, as well impacts,” Professor Collin said. major marine parks as well as areas under as observe and evaluate any localised “With it, we can provide a research baseline development for ports, and oil and gas changes, so we can give the best for decision making in the region that will strike extraction and processing. possible advice to future use managers the right balance between environmental on how they can act sustainably.” A joint venture between CSIRO's Wealth conservation and industry development.” from Oceans Flagship and the University of Dr Babcock and his team have recently The study is funded by the Gorgon Project’s Western Australia, the partnership will be returned from their first exploratory tour Net Conservation Benefit Fund, which is the first whole of ecosystem study for the of the region, where they were scouting administered by the Western Australia region’s unique marine environment. survey sites. Department of Parks and Wildlife. $200 MILLION UPGRADE FOR ESPERANCE PORT

A multi-user iron ore facility worth A$200 million is to be built at the Esperance Port following a State Government announcement in January 2012 that the southern port would be a gateway for iron ore exports from the Yilgarn region. The port is preparing for a major dredging operation which will see 68,000m3 of material cleared from the shipping channel as part of the development of the multi-user facility.

Esperance Ports Sea and Land The Esperance Port is set for a $200 million upgrade. (EPSL) have received the required Federal and State approvals for the dredging to start. Plans have also been developed for an Running of the Esperance, Albany Yilgarn Esperance Solution Limited, a A$11.5 million upgrade of roads within the and Bunbury Ports will soon come consortium led by Asciano, has been precinct to accommodate a realignment under the jurisdiction of the new named the preferred proponent to design, of truck movements following completion Southern Ports Authority. build and operate the multi-user facility. of the transport access corridor.

14 PREMIER CELEBRATES COMPLETION OF THE BUNGAROO WATER PROJECT

Premier Colin Barnett officially opening the Bungaroo Water Project.

The State Government and Rio Tinto have Development of the Bungaroo water source Government to build and maintain a celebrated a successful partnership to has enabled Rio Tinto to relinquish its new desalination plant to cope with the boost water supplies in the Pilbara with Millstream entitlements, freeing up water for pressure on supply, which resulted in the official opening of the Bungaroo Water Karratha and other towns serviced by the significant savings for taxpayers. Project in the State’s north. West Pilbara Water Supply Scheme. Warwick Smith, then Acting Chief The Bungaroo Water Project will supply water The project also allowed Rio Tinto to meet Executive for Rio Tinto Iron Ore, said to Rio Tinto’s coastal operations, as well as its secondary processing obligations the project secured a vital independent freeing up capacity in the West Pilbara Water through an alternative project under the Iron water supply for the company’s rapidly Scheme for supply to Pilbara towns like Ore (Mount Bruce) Agreement Act 1972. growing Pilbara operations. Karratha, Roebourne and Dampier. Ms Davies said the project formed Rio Tinto invested A$330 million in the The project was officially opened in an important part of ensuring the project, including the development of April at Rio Tinto’s Cape Lambert port State Government’s Pilbara Cities a borefield in the Bungaroo Valley near operations with Premier Colin Barnett and vision was realised. Pannawonica and the construction of Water Minister Mia Davies in attendance an 87km pipeline to connect the new “This solution frees up 10 billion litres, or along with representatives from Rio source to the Water Corporation’s almost four and a half thousand Olympic Tinto and its joint venture partners, the Millstream facilities. The Water swimming pools worth of water, for the Water Corporation, Department of State Corporation also spent A$78 million West Pilbara towns; 10 billion litres of Development, and Traditional Owners. upgrading existing water infrastructure. water that can now be used for drinking, Mr Barnett said the project was a great agriculture and industry as the West Pilbara “One of the most pleasing aspects of this example of how the State Government is continues to be developed,” she said. project was the spirit of collaboration, working with industry to deliver positive with a partnership that saw many “One of the biggest winners from this outcomes for regional communities. stakeholders come together. In particular solution is Millstream, with the wetlands and I’d like to thank and acknowledge “From the State Government point of view surrounding environment to benefit from the support of the traditional owners, it is a very elegant solution. It’s a win for Rio less pressure on the water source.” Department of State Development and Tinto, it’s a win for the Water Corporation Ms Davies also said the project had of course the Water Corporation,” and for the people of the Pilbara too,” alleviated the need for the State Mr Smith said. Mr Barnett said. “Rio Tinto has now got its own water supply, and the Millstream resource is now free to be used by the Water Corporation in supporting towns in the West Pilbara.” The original West Pilbara Water Supply Scheme was built in the 1960s by mining companies Hamersley Iron and Robe River, with water sourced from the Millstream aquifer. The Scheme was handed to the State to operate in 1976, with both iron ore projects retaining entitlements to draw water for their operations from the Millstream aquifer.

But as the population of the West Pilbara Photos: Rio Tinto has grown, so has demand on the region’s Premier Colin Barnett shakes hands with traditional owner Cyril Locker as Rio Tinto’s water supply. Warwick Smith looks on.

15 MRIWA Chair Peter Lilly, Mines and Petroleum Minister Bill Marmion, CME Chief Executive Reg Howard-Smith and MRIWA CEO Mark Woffenden NEW DIRECTION FOR WESTERN AUSTRALIAN MINERALS RESEARCH INSTITUTE After more than 30 years since it first was established, the Institute has published For more information about MRIWA, started operating, Western Australia’s more than 300 research reports. the board members and its research Minerals and Energy Research Institute funding and scholarship program visit A new board for the Minerals Research (MERIWA), has been re-established and www.mriwa.wa.gov.au Institute of Western Australia was appointed relaunched as the Minerals Research earlier this year. Institute of Western Australia (MRIWA). Minister Marmion announced the The new Institute was officially launched seven new board members, saying the Research Scholarships by Mines and Petroleum Minister combined expertise of the new team The inaugural Odwyn Jones Awards Bill Marmion at a function hosted by gives fresh impetus to crucial areas of recognising valuable research for the Chamber of Minerals and Energy pre-competitive research. Western Australia’s minerals industry in Perth in June this year. Board directors are: were presented in June by the The State Government initiative aimed Hon Bill Marmion on behalf of the at boosting international competitiveness ·· Chair, Dr Peter Lilly – has 35 years of Minerals Research Institute of in the State’s resources sector established varied industry and research experience; Western Australia (MRIWA). the new Institute under new contemporary ·· Michelle Andrews – Department of legislation with additional funding of Mines and Petroleum Deputy Director The Awards will provide up to A$7.5 million over three years. General, Strategic Policy 25 years’ 15 annual scholarships for students experience in resource and environment to progress their fourth year research In his address Minister Marmion said roles across Government; project. Eight awards valued at MRIWA plays a vital role in establishing ·· Helen Cook – 20 years’ corporate and $2,000 each were presented at the Western Australia as an international centre commercial experience; first awards event. of excellence for minerals research. ·· Stedman Ellis – Australian Petroleum Murdoch University recipients were “This research is increasing our knowledge Production and Exploration Association Jonathan Adams, Edwyne Mutai, and our ability to unlock Western Australia's (APPEA) Chief Operating Officer Western and Joshua Vinicombe, while Curtin mineral wealth,” the Minister said. Region with 25 years’ experience across University recipients included Justin government and industry; “It is organisations like MRIWA that help Brent, Aiden Green, Holly Kiely, ·· Dr Phillip Lockyer – 50 years’ minerals ensure Western Australia’s reputation for Shane Reynolds and Kelsey Roberts. industry experience and a Member of world-class research and development the MERIWA Board since 2006; The 2014 Odwyn Jones Awards are the in the minerals industry continues to be ·· James McClements – Fund Manager first of the new MRIWA scholarships recognised across the globe.” and co-founded Resource Capital program which replaced the Minerals The Institute will continue the work started Funds; and and Energy Research Institute of by MERIWA in 1987 by investing in priority ·· Dr Andrew Shook – has 25 years Western Australia (MERIWA) research needs for WA’s mineral resources, mining and processing industry scholarships awarded to PhD students both now and for the longer-term. Since it expereince. since 1991.

16 EXPLORATION SCHEME CONTINUES TO SUPPORT INVESTMENT ATTRACTION

The Western Australian Government has drilling program which will account for up to Western Australia generated geophysical continued its commitment to the Exploration A$5.8 million of the A$10 million,” he said. and geochemical information, and Incentive Scheme (EIS) with A$10 million a supported with a co-funded drilling “The EIS has been funded for a total of grant, is now moving towards the mine year for the next three years committed in A$100 million since 2009 and has resulted development phase,” Mr Marmion said. recent forward estimates to 2016–17. in a step-wise increase in exploration Minister for Mines and Petroleum Bill information being made available to “Achievements like this one have made Marmion said the EIS initiative aimed to explorers in Western Australia.” a strong contribution to improving the perceptions of WA’s resources encourage exploration in Western Australia The Minister said Sirius’ Nova Deposit investment climate and in Western for the long-term sustainability of the was a shining example of the success Australia being judged the world’s top State’s resources sector. of the EIS program. investment destination in the 2013 Fraser “A key component of the EIS program is “Sirius’ Nova deposit, discovered using a Institute Survey of Mining Companies, the highly successful co-funded exploration combination of the Geological Survey of released in March this year.”

New exploration incentive to build on WA success The State Government is optimistic that more exciting Western Australian discoveries will flow from the Exploration Development Incentive (EDI) announced in the Federal Budget. Mines and Petroleum Minister Bill Marmion said the A$100million national EDI would boost smaller companies’ greenfields exploration, complementing the State Budget’s A$30 million support for WA’s successful Exploration Incentive Scheme (EIS). “The A$100million we’ve invested in EIS since 2009 has already resulted in major discoveries, and the new Federal Government EDI lifts that potential for junior miners, through tax offsets for investors.” “The combination of these State and Federal incentive schemes will help maintain WA’s recent rating as the world’s top investment destination in the Fraser Institute Survey of Mining Companies.”

MINING EXPLORATION SCIENCE BOOSTED Research funding of A$2.58 million over Marmion said supporting the Institute three years was recently awarded as the first would help secure the significant grant by the Minerals Research Institute of revenues generated for the State by the Western Australia (MRIWA). minerals industry. The project will research the technical “The Government needs to facilitate challenges of exploring for minerals in investment in minerals research to some of the extremely complex geological ensure the State’s mining operations are environments that exist in WA. competitive with operations in lower-cost The A$2.58 million will contribute to funding jurisdictions,” he said. a team of researchers from the Centre for “WA was recently ranked number one in Exploration Targeting at the University of the world for investment attractiveness Western Australia, Applied Geology at Curtin by the Fraser Institute, but we must University and the Discovery team of CSIRO. continue to work on ensuring we remain When announcing the funding number one. Research such as this plays Mines and Petroleum Minister Bill Marmion launches Minister for Mines and Petroleum Bill an important role in achieving this goal.” the Mineral Research Institute of Western Australia.

17 ROYALTY REVIEW TICKING ALONG

In the 2012–13 State Budget, the Western ·· The efficiency and equity of the current Group comprising the Chamber of Australian Government announced a royalty regime Minerals and Energy, the Association review of the State’s royalty system, to ·· Cost structures of Mining and Exploration Companies, be conducted jointly by the departments ·· Sovereign risk DSD and DMP, meets regularly to of State Development (DSD) and Mines ·· Profitability and economic conditions discuss technical and policy issues. and Petroleum (DMP). In August 2013, ·· International competitiveness and MRRA staff would like to acknowledge Government approved the Terms of investment attraction the extensive time and effort of all Reference of this Mineral Royalty Rate stakeholders involved and their As well as receiving written submissions, Analysis (MRRA), available on DSD’s constructive contribution to the MRRA. staff working on the MRRA have met website. The departments are currently companies, industry groups, academia and The MRRA is due to report by consulting stakeholders on their views of community groups. An Industry Reference December 2014. ways to improve the State’s royalty system. The MRRA is examining the efficacy and appropriateness of the current royalty system and assessing alternative systems. The Western Australia’s mineral royalties system MRRA will not consider wholesale changes A royalty is a payment made to the Government for the extraction of a resource owned and will continue with an ad valorem system. by the community. It is a purchase price, not a tax. The Terms of Reference require the MRRA The Government calculates royalty payments for most commodities using an ad valorem to consider the equity and efficiency of any system. In 1981, the Western Australian government completed a detailed review of proposed changes to royalty rates, the mineral royalties, which proposed a principle that royalties are to return approximately economic viability of commodity sectors, and 10 per cent of the mine head value of the mineral. The mine head is the first point the royalty arrangements in other jurisdictions. mineral can be stockpiled once extracted. The MRRA cannot make recommendations that would have a detrimental effect on This 10 per cent principle is applied to the sale price using three ad valorem rates: Western Australia’s revenue base. • Bulk materials (crushed and screened): 7.5 per cent Nineteen submissions were received during • Mineral concentrates: 5 per cent the public submissions period. The central • Metallic form: 2.5 per cent themes of those submissions were: Specific royalty rates apply to low value, bulk materials such as limestone, construction ·· The appropriateness of the 10 per cent materials and salt. The royalty is charged as a fixed rate, escalated annually, for each benchmark which underpins the current tonne produced. three-tier structure of ad valorem royalties

WA INNOVATION SHOWCASED IN DESALINATION PROJECT Research into using geothermal heat as a “It is globally accepted that one of the “This technology has the potential to power source to desalinate groundwater is major challenges for increasing fresh service industry, tourist precincts, small an example of Western Australian innovation water supplies through water treatment towns, remote Aboriginal communities addressing local and global water and energy is the cost of energy. In many areas and large residential and commercial challenges, according to Water Minister the energy is not available or the operations such as mine sites or Mia Davies. cost of producing the energy is high,” agriculture,” she said. the Minister said. In recognition of the UN World Water Day (March 22) theme of Energy and Water, Across the State there are significant “It continues a tradition of Western Ms Davies was shown a working prototype brackish and saline groundwater Australians adapting to their environment demonstrating how geothermal heat can resources which, if desalinated, to produce innovative solutions to meet desalinate water. have potential for productive use. their water needs.” Researchers from the University of Western The research project looks at the Australia (UWA) said their prototype – funded feasibility of using the, patent pending, The UWA-led study into the feasibility by the National Centre of Excellence in geothermal powered desalination of geothermal desalination is funded Desalination Australia (NCEDA) – had the technology in regional WA with a by NCEDA and supported by CSIRO, potential to provide cheap, energy-efficient commercial feasibility pilot planned for Department of Regional Development’s desalinated water for industrial use and Dongara, in the State’s Mid West, in the Pilbara Cities office, Department of Water possibly drinking supplies. near future. and the Water Corporation.

18 Photo: The Photo: University Australia of Western

Assistant Professor Scott Draper, PhD student Qin Zhang and Professor David White inspect the O-Tube. WA RESEARCH WINS TOP GONG

A joint research project between the the program’s large and mini O-Tubes. The mini O-Tube, at 1:5 scale of the large University of Western Australia and major Together, the two tubes are revolutionising O-Tube, allows for rapid turnaround on players in the oil and gas industry has won research on pipeline stability design and smaller scale experiments and has been the 2014 AIRG Medal for Australasian sediment transport. instrumental in studying in-situ soil erosion. Major Industry Technological Innovation. Winthrop Professor John Dell, Dean of Winthrop Professor David White, who The award is given annually for outstanding UWA’s Faculty of Engineering, Computing holds a Shell-funded professorship in Australasian industrial research conducted and Mathematics, said the faculty was Offshore Engineering at UWA, said the during the previous year. proud its partnership with industry had research has created a new paradigm in The medal was presented for the been recognised with the award. pipeline stability design. development of the O-Tube program, a world-first facility which rapidly circulates “The O-Tube program uses engineering “Our research has quantified how the 60 tonnes of water to simulate underwater solutions to optimise the competitiveness seabed becomes mobile during cyclones conditions during tropical cyclones. of industry while ensuring the safety of our and strong tides,” he said. “This mobility offshore infrastructure,” Professor Dell said. causes self-burial of subsea pipelines, In presenting the award to the STABLEpipe sheltering them from the destabilising “It is not only a great example of how Joint Industry Project (JIP), the Australasian hydrodynamic forces. By banking this UWA’s research innovation changes how Industrial Research Group (AIRG) said the beneficial effect, we can assure the companies globally do engineering, but also cutting edge program – developed and stability of pipelines while reducing the of our work for the wider community and funded with the support of the project – had requirement for additional protection, the environment. These are the kinds of resulted in significantly improved designs of such as rock dumping, which is costly partnerships that benefit everyone.” offshore oil and gas pipelines while ensuring and environmentally disruptive. We’re very cost savings for the industry. Established in 2009 and the recipient proud that our O-Tube technology The STABLEpipe JIP participants are of a number of awards prior to its latest – which is a homegrown UWA invention Woodside Energy Ltd, Chevron Australia Pty accolade, the program has pioneered – has led to national recognition through Ltd, Wood Group Kenny Pty Ltd, Atteris Pty improvements in engineering design, the AIRG Medal”. promoted safety and reduced risks to both Ltd and UWA, which is the lead researcher. The UWA researchers are now working humans and the environment. A UWA in-house technical team led by with Norway’s leading offshore verification Winthrop Professor Liang Cheng, of the The large O-Tube can create cyclonic agency, Det Norske Veritas, to transfer School of Civil, Environmental and conditions in a controlled experimental the STABLEpipe JIP research into a new Mining Engineering, and Winthrop Professor environment, demonstrating how seabed industry guideline, allowing this Western David White, of the Centre for Offshore sediment, pipelines, other infrastructure and Australian innovation to be rolled out into Foundation Systems, designed and built flora interact with the marine environment. global oil and gas engineering practice.

19 Miami University Geobiologist Pam Reid with a cross section of an ancient stromatolite from Hamelin Pool.

PROFESSOR FINDS HOLY GRAIL AT HAMELIN POOL

Marine Geoscience Professor Pam Reid “Phil’s very involved in our project, we be funded by the companies interested in spent two decades in the Bahamas simply couldn’t have done it without him,” microbial deposits such as stromatolites. studying stromatolites before she found she said of her three-year project funded “Microbial deposits are ‘hot’ with oil the holy grail of her calling – Hamelin Pool. by oil companies to research and map the companies right now,” she said. Shark Bay stromatolites,” she said. The Miami University Geobiologist “I’ve been doing geo-microbiology for explained during one of her annual “The entire project was initiated with 25 years, but all of a sudden there’s a pilgrimages that the remote spot in Shark Phil and collaboration has been close huge amount of oil company interest Bay on the northern coast of Western and ongoing.” and a lot of meetings with other geologists Australia is “really the big time”. Pam’s relationship with DMP includes – it’s really great.” “You know, I spent 20 years in the regular visits to the Core Library in Carlisle. “I started with one student and now there’s Bahamas and I feel like it was just She and members of her regular team of a team of about four or five. training for Hamelin,” she said. up to five scientists and academics also “Plus it’s not just students and visiting Pam isn’t just interested in those strange, have a strong friendship with former DMP microbiologists, but other scientists such pale descendants of earth’s earliest life Chief Paleontologist Kath Grey. as a woman from the University of Florida forms found billions of years ago during This is the third consecutive year Pam and who just received NASA funding. the pre-Cambrian period, she’s crazy her colleagues have visited to conduct about them. “We have a researcher from Stanford two months of field work at Shark Bay. University, a PhD student also linked to “They’re just magnificent, absolutely Like all geologists, she loves the field NASA, recording high resolution imagery fabulous and the diversity and extent of work, but that time in the water and the by flying a quadcopter from our boat over the stromatolites at Hamel is unparalleled hut they turn into a mini laboratory each Hamelin Pool. in the world today,” she said. year, has once again drawn to a close. “We probably have the highest resolution It’s a passion shared by former Now it’s time to start writing reports. underwater dataset that exists anywhere Department of Mines and Petroleum “This year is the year of the papers, we in the world.” (DMP) Geological Survey Director, Dr Phil had the fun in the field and now it’s time Playford who discovered the Hamelin When asked why oil companies are so for the hard work,” Pam explained. Pool stromatolites in1954 and was interested in stromatolites, Pam explains that largely responsible for Shark Bay’s World The papers will be pored over by fellow oil companies want models for prediction of Heritage listing. scientists and academics, and the oil reservoirs and source rocks. companies who have funded the project. Not surprisingly, Phil has been an Stromatolites are a modern example of source inspiration to Pam, a friend and colleague Pam acknowledges her good fortune material and reservoirs that may be rich in oil she reveres. and is thankful she was lucky enough to and gas when found in ancient rocks.

20 GEOLOGY MEETS HISTORY IN CARLISLE

Drill core material and racks at the Carlisle Core Library.

Department of Mines and Petroleum Core The funding will increase the library’s about 7000 pallets of samples that have Library librarian Paul Stephenson knows storage capacity by about 50 per cent, to be moved by fork lift. exactly what the Beatles were wearing or 3500 square metres. “Some geologists might need to get a when they arrived in Australia 50 years Minister for Mines and Petroleum, quick reminder of the characteristics of ago – he read about it at work. Bill Marmion praised the facility as a specific ore zone so they walk straight “They were all wearing masks, for some one of the most important resources up to the section they want to look at, reason,” he remembered. in Western Australia for petroleum but others will log every centimetre with The Fab Four’s arrival at Sydney Airport companies to do pre-analysis before great care,” Paul said. moving to expensive drill holes. on 11 June 1964 was recorded in a front “They may spend up to a week logging page picture in The West Australian, “The data we make available to them is just one rack of samples.” which is wrapped around a sample of crucial to exploration because it reduces As technology changes, resources that core that Paul’s team exhumed from one the technical and financial risk to potential have been drilled and passed over may of the tall storage racks at the library. investors,” he said. suddenly become commercially viable. “We didn’t have bubble wrap back then, Companies are required to submit cores, The current interest in shale and so Perth’s daily paper was the wrap of cuttings and sidewall core material tight gas has sparked a new wave of choice,” he said. obtained during drilling as part of the investigation of old core. The huge library at Carlisle archives State legislative requirements for petroleum and and Commonwealth drill samples crucial geothermal exploration. The library is a mecca not only for mineral and petroleum geologist, but to new exploration research, but it is The samples become available to the also for biologists and other scientists almost full as explorers take advantage of public after a strict confidentiality period. the West Australian Exploration Incentive who want to tap into its stored secrets. “Companies are reducing exploration costs Scheme’s Co-Funded Drilling Program. Former Chief Paleontologist at DMP, significantly because they can look at our Samples include rocks many millions of Kath Grey said some fossils within the samples,” Mr Stephenson said. years old that could be the key to the next core samples were about 800 million big mineral discovery in Western Australia. “Core from one offshore well could be years old. worth from $30m to $90m in terms of how With only 19 per cent capacity left and She said the study of ancient fossil much it cost to drill.” demand for space growing, $4.8 million rocks, along with stromatolites found at in the 2014 State Government Budget Like a gigantic IKEA warehouse, the library Hamelin Pool in Shark Bay, was vital for was critical. is packed with tall storage racks holding petroleum exploration research.

21 On the ground at Toro's Wiluna Project.

DOING THE RIGHT THING

Following on from the last edition of Prospect we take a look at how uranium projects in Western Australia are progressing and some of the challenges they face.

The key players – Toro, Cameco, EMA open dialogue that included addressing These workers will be trained and and Paladin – know they need community concerns for protection of the heritage monitored regularly under stringent WA support and they’re paying close attention and cultural values of the region. safety regulations. to community engagement, public safety “The Traditional Owners asked us to Toro’s aim is for radiation exposure to and environmental awareness. help them understand in particular how Wiluna employees to not exceed 50 per Toro is positioned to be the first company radiation may affect their people and their cent of occupational exposure limits. to start production at its site 30km south land,” Dr Guthrie said. Wiluna uranium concentrate will be of Wiluna. “Toro responded by arranging for some trucked south on the Goldfields Highway Dr Guthrie is proud that her company was of the Traditional Owners to visit an to Norseman, using the eastern bypass at among the first to congratulate the Wiluna operating uranium mine in South Australia Kalgoorlie, then on the Eyre Highway into and Tarlpa groups last year when their and a mineral sands mine in Western South Australia for transfer to ship at Native Title claims were determined by Australia so they could see for themselves Port Adelaide. the Federal Court. how radiation issues can be managed to At maximum production, the Wiluna mine protect their people and their land.” Toro representatives attended the formal will require five shipping containers court ceremony, held on country, at the Toro hopes to provide 350 jobs during per month in one transport movement invitation of the two groups – a testament construction of the Wiluna mine and to to carry product to the port of export to more than four years of patient and have an operational workforce of 170. from Australia.

22 At all times, a minimum of two trucks As for the Toro project, uranium to locals including the local traditional will travel together between the mine site concentrate produced at Kintyre will be owners and, to a lesser extent, economic and Adelaide. sealed in 200-litre steel drums and then benefits to the local pastoralists,” he said. stowed in shipping containers and secured A round trip will require total travel time, “This is already the case to a certain extent using a Kevlar-based strapping system. including load/unload, of 90 hours for during the initial exploration phase. a dual-driver combination travelling at Each drum will be registered and recorded “Local pastoralists are being contracted to an average speed of 80km per hour to before the shipping container is sealed. clear areas, maintain tracks and dig sumps complete a journey of 5461km. The containers will then be locked for drilling.” This includes fatigue management rest and will not be opened, unless for Mr Borshoff believes there is little danger breaks and one overnight break at the Toro official inspections, until they reach their in transporting uranium concentrate and accommodation camp. There will be no overseas destination. points to the industry’s outstanding global prolonged stop-overs beyond the mine site. EMA’s Julian Tapp said the company safety record. Toro has also committed to progressive expected that about 200 full time jobs Planning for mine closure is an integral part rehabilitation of its Wiluna mine. would be created once production started, of Paladin’s proposed mine development hopefully towards the end of 2016. The mine will be a shallow open-cut surface and operations. “More would be employed during the mine to a maximum depth of 15 metres. “The contents of the closure plan will be anticipated construction phase from As sections of the Wiluna pits are as prescribed in the 2011 DMP and EPA mid-2015 to the end of 2016,” he said. exhausted, they will be backfilled and Guidelines for Preparing Mine Closure rehabilitated to elevations and slopes similar Mr Tapp said attention to the safety of Plans,” Mr Borshoff said. to the original landscapes. future employees was a paramount issue. Wiluna is the only current Western “We expect the drying and packaging The outlook Australian uranium mine proposal to receive stage to be fully automated to limit human The key players in Western Australia are both Western Australian and Federal exposure to associated dust,” he said. now waiting for the price of uranium to rise Government environmental approvals. to turn their plans into action. Mr Tapp said that EMA planned to Toro is developing an Operational undertake progressive rehabilitation Ironically, Japan may be the country Mining Proposal and Mine Closure and of the mine. that triggers a revival of the global Rehabilitation Plan that will be available for uranium industry. stakeholder input. “We will be putting tailings back into the mining void and then backfilling with 30m Prime Minister Shinzo Abe’s government has The company is also currently engineering of new overburden material,” he said. unveiled a pro-nuclear energy plan that could a tailings cap that will ensure radiation open the door to restarting some of Japan’s Paladin’s John Borshoff believes in releases are contained within naturally 48 idled reactors as soon as this year. occurring background levels. significant involvement with all aspects of the local community, throughout all activity Japan’s biggest neighbour, China, has 28 The storage construction is of a design phases including exploration, development, reactors under construction and five of in which radioactive material left operations and closure. them will be ready to be connected to the after processing remains within the grid this year. tailings facility and does not leach into “Communities near Manyingee, such the surrounding environment. as Onslow, will be kept updated on the And Japan’s next door neighbour, South progress of the project so that they are in a Korea, has given the green light for the Cameco’s Kintyre project is expected to position to maximise the economic benefit construction of two new reactors to begin deliver significant economic benefits to WA, from the project,” Mr Borshoff said. this year. particularly the people of the East Pilbara. “While Manyingee is in a relatively remote All WA uranium explorer eyes seem to be It is anticipated the project will employ up to and isolated area, it is expected that there on the east at the moment as the waiting 450 people, with priority given to hiring and will be employment opportunities available game continues. training local people, including Traditional Owners, the Martu. Cameco has considerable experience in the management of radiation during mining and milling operations. As part of the planning for the Kintye project, Cameco has completed radiation modelling and emissions and dispersion studies to understand any potential risks to the public, workers and the environment. “These studies have shown that only very low levels of radiation will occur outside of the immediate mine site,” Mr Reilly said. Mr Reilly said that uranium concentrate had been safely transported by road within The Kintyre site. Australia for more than 30 years.

23 SAFETY REPORT WARNS INDUSTRY ON FATAL TRENDS

4-5 years 1-4 weeks 1-6 days 6% 6% ≥ 5 years ≥ 10 years 6% 14% 8%

< 1 year 5-10 years 31% 3-4 years 6% 6% 4-5 years 6% 2-3 years 1 month to < 1 year 17% 37% 3-4 years 14% 1-2 years 17% 1-2 years 2-3 years 14% 12%

Figure 1: Duration of deceased person in role as a Figure 2: Duration of deceased person at the mine as percentage of total fatalities [sample size = 49] a percentage of total fatalities [sample size = 49]

≥ 11 years 5% 1-6 days 6% 5-6 years 8% No procedure 27%

3-4 years 19% 1 month to < 1 year Non- 38% compliance with procedure Compliance 62% with procedure 11%

1-2 years 24%

Figure 3: Duration of person undertaking supervisor’s role Figure 4: Availability of procedure and procedural compliance as a percentage of total fatalities [sample size = 37] as a percentage of total fatalities [sample size = 52]

Trends in mining-related fatalities that will “If we had a 100,000-strong workforce “It also revealed that the most common help raise awareness and improve safety back in the 1950s, the average number of ‘trigger actions’ for a fatal accident performance within the industry were fatalities per year would have been around were equipment not being restrained or identified in a recent mines safety report 200, so we have certainly come a long isolated and the incorrect use of safety released by the Department of Mines and way, but our ultimate goal moving forward harness equipment. Petroleum (DMP). is to become a ‘zero-harm’ industry.” “Fatigue was another contributing factor DMP Resources Safety Executive Director The report revealed the most common in the review, with the most common Simon Ridge says the report analysed 52 reason for a workplace situation resulting time of day for a fatal accident to occur fatal mining accidents that occurred in in a fatality was workplace hazards not being the last two hours of a typical Western Australia from 2000 to 2012. being identified. day shift when a worker is more likely to lose concentration.” “In the 13-year period reviewed, the Mr Ridge said he hoped sharing the mining workforce rapidly increased results of the report with industry would Mr Ridge said these findings reinforced the from 40,000 people to 100,000,” help to reduce worker exposure to importance of a robust safety induction Mr Ridge said. hazards and situations which could program, a positive safety culture and the potentially be fatal. effective implementation of fatigue “Despite this, the number of fatalities per management plans. year showed a downward trend from “The report revealed that almost half of seven in 2000 to zero in 2012, when the the fatal accidents occurred when the View the full report on DMP’s website at State recorded its first fatality free year in deceased person had been working at a www.dmp.wa.gov.au/documents/Reports/ more than a century of recorded history. mine site for less than a year,” he said. RP_FatalAccidentsMINING_2000-12.pdf

24 RESOURCES SAFETY MINISTERIAL ADVISORY PANEL ESTABLISHED A new Ministerial Advisory Panel (MAP) has been established to develop and implement major safety legislation amendments at Resources Safety as part of the continued consultative process at the Department of Mines and Petroleum (DMP). The panel is made up of representatives from government, industry groups and unions with the aim of increasing stakeholder engagement and face-to-face briefings to ensure all stakeholders are informed and have the opportunity to provide input to the process of legislative changes. The panel will provide advice to the Minister of Mines and Petroleum Bill Members of the Ministerial Advisory Panel for Resources Safety Marmion on the safety legislation reform process, and also feed information back regime for the Western Australian resources Advice to the Minister will focus on the following: to their respective organisations. sector based on practical risk management. ·· Legislative reform and the development of The first MAP meeting was held in March “This will take due account of current guidance material to support these changes. with former BHP Billiton External Affairs reforms in occupational health and safety Vice-president Ian Fletcher appointed as ·· Strategies which will increase the regulation which are part of the Council the Independent Chairperson. safety capabilities of both industry of Australian Governments (COAG) and the regulator. It is anticipated that the panel will operate Business Regulation and Competition until December 2014 and that meetings will reforms,” Mr. Ridge said. ·· Performance reporting criteria and be held bi-monthly. appropriate governance arrangements. “Our aim is to deliver a best practice Resources Safety Executive Director Simon legislative model based on cost recovery ·· Communication and implementation Ridge said the objective of the panel was thereby ensuring efficient service delivery of safety reforms, to ensure a to deliver a best practice safety regulatory to industry.” common understanding.

Ministerial Advisory Panel members ·· Mr Ian Fletcher Independent Chairperson ·· Mr Stephen Price Secretary, Australian Workers Union ·· Mr Simon Ridge Executive Director, Resources Safety Division, ·· Mr Glenn McLaren State Organiser, OHS Adviser, Department of Mines and Petroleum (DMP) Australian Manufacturing Workers’ Union (AMWU) ·· Mr Greg Stagbouer Director, Australian Drilling Industry ·· Mr Gary Wood Secretary, Construction Forestry Mining Association (ADIA) and Energy Union (CFMEU) Mining and Energy ·· Mr Kevin Wolfe Business Development Manager, Monadelphous Division WA District (representing Australian Pipeline Industry Association – APIA) ·· Mr Chris Oughton Director, Kwinana Industries ·· Ms Karin Lee Manager Safety and Risk Services, Chamber of Council (KIC) Commerce and Industry WA (CCI WA) ·· Mr Michael Tooma Partner, Norton Rose Fulbright ·· Ms Miranda Jane Taylor Senior Policy Adviser, Australian ·· Mr Nick Zovko Regulatory Policy Manager, Plastics and Petroleum Production and Exploration Association (APPEA) Chemicals Industries Association (PACIA) ·· Mr Richard Kern Regional Manager Asia Pacific Newmont ·· Mr Lew Pritchard General Manager Business (representing Chamber of Minerals and Energy WA – CMEWA) Development, DMP ·· Mr Justin Fromm Senior Policy Officer, Association of Mining ·· Ms Jennifer Shelton Principal Policy Officer, DMP and Exploration Companies (AMEC)

25 HISTORY, DESTINY AND DMP It’s as if Bill Marmion’s tenure as the Minister for Mine and Petroleum was simply meant to be. His great-grandfather was Western Australia’s first Minister for Mines and Lands as a member of Sir Andrew Forrest’s Cabinet. William Edward Marmion served in the Legislative Council from 1870 until 1890, when he moved into the Legislative Assembly. His great-grandson remembered him fondly in his maiden speech to the State Parliament in November 2008. “William Marmion had a reputation for being honest and clear-sighted,” Bill said. Western Australia’s first Mines Minister Minister Marmion has a strong family William Marmion. connection to WA's resources sector. “He was an outspoken supporter of Fremantle as a gateway to the State and Bill’s great-great-grandfather came to WA “Officially, ship’s records list his he was not afraid to stand up on behalf from Ireland as a young man to make his occupation as a clerk, with one of his constituents. way in the world. historian suggesting that he arrived as “From the 1870s through to the 1890s, when an indentured servant. “I am reminded that great men and Albany’s King George Sound and other hubs women who built this State . . . had a “Even so, he managed to develop threatened Fremantle’s position as Western vision and were not afraid to step out to a successful merchant business in Australia’s major port, William Marmion fought create that vision,” he told Parliament. Fremantle, along with a whaling station hard alongside other Fremantle businessmen to up the coast, close to where the get the Government to build a much-improved “I am here today because my great-great- suburb of Padbury is now located. longer jetty, thereby assuring Fremantle’s place grandfather was such a man. as the State’s premier port facility. “He died in 1855, leaving his wife, “His name was Patrick Marmion, and in Charlotte, and son William Edward “He also argued for the retention of the 1841, at the ripe old age of 25, he migrated Marmion, to continue the family railway workshops in Fremantle rather than from Northern Ireland to Fremantle. business. moving them to Midland Junction.” “Although Fremantle and Perth had been “William went on to make his mark in The history of the Marmion family stretches settled for only 12 years before Patrick other ways.” back to the early days when Fremantle and arrived, his energy, drive and commercial Perth were fledgling communities. nous must have suited the times. And the rest, as they say, is history.

SAVE THE DATE The Department of Mines and Petroleum’s Golden Gecko Awards recognising environmental excellence and leadership in the WA resources sector, will be held at the Duxton Hotel, Perth on 9 October 2014. This year’s event will be staged in two parts, a brief seminar where finalists will present on their submissions, followed by a cocktail networking event where the Golden Gecko award/s will be announced by the Minister for Mines and Petroleum, Bill Marmion. Tickets will be on sale shortly. Please visit www.dmp.wa.gov.au/goldengecko or phone Richard Smetana on (08) 9222 3639 for more information.

26 KIMBERLEY SEISMIC SURVEY UNDER WAY

Coastal Seismic Survey base camp mechanical work trailer.

Much needed data and a greater DMP's Geological Survey of WA (GSWA) travel down through the Earth and are geological understanding of the Kimberley Executive Director Dr Rick Rogerson reflected back from geological strata region’s Canning Basin will be obtained said understanding the structure and fault structures that mark changes through a seismic survey which got of the old pieces of crust that have in rock type. underway at the end of May this year. amalgamated as the Australian “Geophones that are spread out along continental plate would assist geological Mines and Petroleum Minister Bill Marmion the survey line record the return of the understanding of the region. said understanding the Earth’s basic reflected seismic waves. The seismic structure would allow the responsible and “We’re trying to establish the subsurface waves take longer to return from informed search for natural resources, geology of the Canning Basin and the deeper reflectors so the depth of including groundwater. extent and nature of its sub-basins and each layer can easily be determined,” troughs as well as identify any regional Dr Rogerson said. “It represents one of a series of surveys faults, folds and other major structural across Australia as part of the National “As the survey progresses an image is elements,” Dr Rogerson said. GeoTransect Program to build a three- built up that is a vertical slice through the dimensional image of the Australian “There are a number of major fractures crust. Listening for up to 20 seconds at continent, and its evolution,” he said. in the Earth’s crust between the each recording point allows us to image crystalline basement rocks of the to the base of the crust and possibly The project, funded by the State north (Kimberley) and the crystalline even into the Earth’s mantle.” Government’s Exploration Incentive basement of the Pilbara that are of Scheme (EIS), involves a 700km seismic Wherever possible, the survey was particular interest.” survey along the Great Northern Highway conducted along the road verge to and the Gibb River Road, from 150km north He said understanding the basic structure minimise disruption to traffic and of Port Hedland to 120km east of Derby. of the Earth allows for more informed prevent any possible damage to the exploration for natural resources, road surface during the six to eight-week Funded by the EIS, this latest seismic including ground water. survey period. survey will link up with the deep crustal surveys conducted by the Department Seismic reflection data are generated The survey is an important collaborative of Mines and Petroleum (DMP) in the by vibrating the ground using a number research project between the Kimberley under the A$3m Kimberley of large, specialised Vibroseis trucks. Australian Government’s Geoscience Science and Conservation Strategy. The seismic waves which are generated Australia (GA) and DMP's GSWA.

27 Commenced Operations

AGRICULTURE Kalgoorlie – Tropicana Gold FORTESCUE METALS GROUP LTD ANGLOGOLD ASHANTI/INDEPENDENCE GROUP East Kimberley – Ord – Ord/East Kimberley Fortescue Metals Group operates four iron ore Expansion Project JOINT VENTURE mines across its two mining hubs, Chichester and Solomon, in the Pilbara. In March 2014, WA STATE GOVERNMENT The Tropicana Joint Venture gold mine was opened ahead of schedule in 2013, within budget. Fortescue officially celebrated the completion of The Ord East Kimberley Expansion Project is It received State EPA approval on 24 September its $9 billion expansion, which lifted production a good example of the Commonwealth and 2010. FID was approved November 2010. capacity to 155Mtpa. The expansion included the State Government working closely together to Commonwealth EPBC Act approval was obtained construction of the greenfields Solomon Hub deliver economic and Indigenous participation on 13 December 2010 with environmental offset in the Hamersley Ranges, comprised of opportunities and much-needed infrastructure conditions. The construction of a 225km road, Kings Valley and the nearby 20Mtpa Firetail to a regional community of Western Australia. bore field, pipelines, airstrip, accommodation mine; an expansion of the Christmas Creek mine The State Government committed $322m to village, power station and mine plant have been to 50Mtpa; and major extensions of Fortescue’s increase the existing amount of irrigated land in completed. In September 2013, the Tropicana port and rail facilities. Eighty-six per cent of the the Kununurra region by releasing approximately Joint Venture project reached a significant money spent on the Kings Valley project was 15,000ha of additional Ord farm lands. milestone with its first gold pour. On 6 March spent with Australian suppliers. This funding has enabled the construction 2014, the Minister for Mines and Petroleum Expenditure: $9b. of irrigation channels, roads and off-farm officially opened the Tropicana Gold Mine. infrastructure to service the future needs of Employment: Construction: 7000; Operation: 6000 Expenditure: $700m. the region’s growing population and sustain Pilbara – Port Hedland – Atlas Iron economic growth. The State Government has Employment: Construction: 700; Operation: 400 ATLAS IRON LTD signed a Development Agreement with Kimberley Atlas Iron Ltd is an iron ore explorer and miner Agricultural Investment (KAI) for the lease and INFRASTRUCTURE development of 13,400ha of irrigation land in the focused on developing a number of projects Goomig and Knox Plain areas. KAI, a subsidiary South West Region – Kemerton in the Pilbara region of Western Australia. of China’s Shanghai Zhongfu Group, proposes (HUILS – Heavy Use Industrial Land Strategy) Atlas commenced exporting in December 2008 to establish a sugar industry in the Kununurra WA STATE GOVERNMENT from its Pardoo mine, east of Port Hedland. region. During 2014 the State is working towards Atlas’ second mine, Wodgina, commenced Kemerton Industrial Park (KIP), located 17km the release of approximately 5,000ha of Ord operations in 2010. Atlas’ third mine, Mt Dove, north of Bunbury, is the main strategic industrial West Bank and Mantinea lands via a Request was opened in December 2012 followed by its area in the South West region and the nearest for Proposal process. The Commonwealth Abydos mine in 2013. The first phase of the regional heavy industrial site to Perth. It is designed Government has invested $195m for construction Mt Webber mine has commenced, with haulage to supplement the Kwinana Industrial Area, only of social and common use infrastructure in the expected to begin in June 2014. Atlas aims to 90 minutes away by road. The estate comprises East Kimberley region through the East Kimberley export between 9.8Mt and 10.3Mt in the 2014 7,543ha of land, including 2,019ha of industrial Development Package (EKDP) National Partnership financial year. Atlas plans to progressively expand core, 293ha of support industry area and 5,231ha Agreement (NPA). The Yawoorroong Miriuwung its exports, targeting 15Mtpa by 2015 and 46Mtpa of buffer areas. It is accessible to the Port of Gajerrong Yirrgeb Noong Dawang Aboriginal during the 2017 calendar year. Atlas operates its Bunbury by road and a rail link is being planned. Corporation (MG Corporation) building and the current mines on the basis of road haulage to Port The estate is serviced by major road links to the Department of Housing transitional housing Hedland. For the longer-term developments and metropolitan area. The KIP currently includes a projects have been successful nominations production beyond 15Mtpa, rail haulage will be silicon smelter, a titanium dioxide plant, a chlor- for the Australian Institute of Architects 2013 preferable due to the scale and distance to port. alkali plant, two peak load power stations and Western Australian Architectural Awards. Atlas is engaging with a number of infrastructure a wastewater treatment plant. Under the Heavy The transitional housing project has also owners and developers with the intent of unlocking Use Industrial Land Strategy, the Government achieved a 2013 Premier’s Award for Improving the value of Atlas’ Horizon 2 assets. is progressing Kemerton towards project ready Indigenous Outcomes. Expenditure: $950m. status by undertaking environmental, heritage and Expenditure: $517m. planning approvals for the estate. Work towards Employment: Operation: 700 Employment: Construction: 761 progressing approvals commenced in 2009 and is anticipated to be completed in 2014–15, by which OIL & GAS DEVELOPMENTS GOLD time the structure plan and zoning adjustments will also have been completed. Pilbara – Macedon Domestic Gas Project Boddington – Gold Mine BHP BILLITON PETROLEUM (AUSTRALIA) PTY LIMITED NEWMONT BODDINGTON GOLD PTY LTD IRON ORE BHP Billiton Petroleum (Australia) Pty Ltd and Apache Energy Limited have commissioned a Newmont Boddington Gold (NBG), a major gold Pilbara – BHPB – Port Blending and domestic gas plant for Western Australia at the and copper mine in the south-east of Western Rail Yard Facilities Australia, 120km from Perth, commenced Ashburton North Strategic Industrial Area near operations in 2009 after a $3b expansion of the BHP BILLITON IRON ORE PTY LTD Onslow. The development involves four sub-sea original Boddington Gold Mine, a joint venture BHP Billiton WA Iron Ore’s Port Blending and gas wells, a wet gas pipeline, an onshore gas which had been in care and maintenance for Rail Yard Facilities project has enhanced the processing plant 11km south-west of Onslow and several years. NBG is now 100 per cent owned efficiency of its supply chain. The project handled a sales gas pipeline connected to the Dampier-to- and operated by United States global miner first ore in the December 2013 quarter, as planned. Bunbury Natural Gas Pipeline. Daily gas production capacity is 200TJ. Newmont Mining Corporation. First gold was Expenditure: $1.25b. poured in September 2009 and 18 months later Expenditure: $1.5b. Employment: Construction: 2100; Operation: 720 the operation achieved its first one-million-ounce Employment: Construction: 700; Operation: 14 milestone. An estimated 700,000-750,000 ounces of gold per annum is expected to be produced for the life of the mine, which is officially more than 24 years, however it is possible the mine life could be further extended with a decision likely by the end of 2014. NBG also produced 67Mlbs of copper in 2013 and a similar amount is expected to be produced in 2014. Employment: Operation: 650

28 This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. Committed Projects

AMMONIUM NITRATE INFRASTRUCTURE Pilbara – Roy Hill Iron Ore Mine & Infrastructure ROY HILL HOLDINGS PTY LTD Kwinana – Ammonium Nitrate Pilbara – Ashburton North Strategic Facility Expansion Industrial Area Roy Hill Holdings is a private company which is CSBP LIMITED WA STATE GOVERNMENT majority-owned by Hancock Prospecting Pty Ltd, and has key international investment partners with CSBP is currently expanding its ammonium nitrate The State Government is developing the strategic steel-making interests. It is developing production facility at Kwinana from its current Ashburton North Strategic Industrial Area the Roy Hill iron ore project located 115km capacity of 520,000tpa to 780,000tpa. The (ANSIA) as a hydrocarbon precinct in the Shire north of Newman. This project is expected to construction of an additional nitric acid plant and of Ashburton, 11km south-west of Onslow, to come into production in 2015 and will produce ammonium nitrate plant, together with an upgrade enable the development of natural gas projects 55Mtpa of iron ore for 20 years following ramp- of the existing prilling plant and other infrastructure and associated industries to exploit the gas up. The project includes mine development, work, has been completed. Commissioning is reserves in the Carnarvon Basin and Exmouth mine processing infrastructure, a new heavy- underway and full operation is expected in the Gulf. The ANSIA includes three larger sites for haul railway, and significant new port facilities second quarter of 2014. major gas processing proponents, secondary at Port Hedland's inner harbour. Environmental Expenditure: $550m. processing sites, areas for general support approval for Roy Hill mine Stage 1 was received industries and supply base operations, a port Employment: Construction: 500; Operation: 10 in December 2009 and environmental approval with common user facilities to be managed by the for Stage 2 was received in March 2010. In July Pilbara – Burrup Industrial Estate Site D Dampier Port Authority and common user access 2011, Roy Hill Infrastructure was granted a Special – Yara Pilbara Nitrates and infrastructure corridors. Two foundation Railway Licence to develop a 344km railway from proponents, BHP Billiton Petroleum and Chevron YARA INTERNATIONAL ASA its mine in the eastern Pilbara to Port Hedland. All Australia, have taken up land allocations within primary approvals have been secured and major Yara, Orica and Apache have formed a joint the ANSIA. Chevron Australia commenced project works commenced in late 2012. Dredging venture – Yara Pilbara Nitrates Pty Ltd (YPNPL). construction in late 2011 with first LNG exports of the new berth areas at South West Creek YPNPL has executed an Engineering, Procurement scheduled for late 2016. BHP Billiton Petroleum was finished ahead of schedule, the airstrip and and Construction (EPC) contract for the has commissioned a domestic gas plant, with internal mine roads have been completed, and the construction of a circa 350,000tpa Technical production capacity of 200TJ per day. rail construction, mine and port accommodation Ammonium Nitrate (TAN) plant to be located villages are completed and being utilised. As of on the Burrup Peninsula. Ammonia feedstock IRON ORE late April 2014, over 2700 construction workers will be supplied from Yara Pilbara Fertilisers Pty were engaged across the project. In addition, Ltd (YPFPL), which operates its facility directly Pilbara – BHP Billiton Iron Ore – Shiploaders the new Corporate HQ and Remote Operations adjacent to the proposed location for the new 1 and 2 Centre at the Perth International Airport business TAN plant. YPNPL will be the operator of the TAN BHP BILLITON IRON ORE PTY LTD precinct are now completed. Considerable works plant and Orica will manage the product sales are already underway on port, rail and mine and distribution. Yara and Orica each have a 45 During the December 2013 quarter, BHP Billiton construction with the 34 per cent completion per cent interest in the joint venture and Apache approved an investment of US$301 million (BHP stage being reached in late April 2014. The debt the remaining 10 per cent. It is expected that all Billiton share) to replace shiploaders 1 and 2 at financing package for a mining project of US$7.2b manufactured product will be sold into the Pilbara the company’s Nelson Point operations in Port was secured in March 2014. region. Work on the project has commenced Hedland. The two new shiploaders will increase and it is expected that the new plant will be the reliability of its inner harbour port facilities Expenditure: $9.9b. commissioned during the third quarter of 2015. and create additional port capacity that will be Employment: Construction: 3600; Operation: 2000 utilised as a series of debottlenecking initiatives Expenditure: $800m. to increase the capacity of the supply chain to Employment: Construction: 600; Operation: 65 approximately 260Mtpa to 270Mtpa (100% basis), IRON ORE PROCESSING at a low capital cost. Commissioning of the two Pilbara – Cape Preston – Sino Iron replacement shiploaders is scheduled for the HEAVY MINERAL SANDS CITIC PACIFIC second half of the 2014 calendar year. Keysbrook – Heavy Mineral Sands Mine The Sino Iron project is located at Cape Preston, Expenditure: $380m MZI RESOURCES LTD 100km south-west of Karratha. Construction of the Employment: Construction: 500 largest magnetite mining and processing project MZI is proceeding to develop a mineral sands in Australia is at an advanced stage, with limited mine located near the township of Keysbrook, production from the first and second of six lines approximately 70km south of Perth. The project commencing in 2013. On completion, the project has received environmental approval from the will comprise of in pit crushers, six autogenous and Minister for Environment, as well as development six ball mills, concentrators, 6Mtpa pellet plant, approvals and extractive industry licences from 25km slurry pipeline, combined cycle 450MW the Shires of Murray and Serpentine-Jarrahdale. power station, new port and trans-shipment Keysbrook has a mineral resource of 78.9Mt at an facilities, and a 51GL desalination plant. At full average grade of 2.5 per cent total heavy mineral production the project will export up to 21.6Mtpa (THM) and an ore reserve of 670,000t of THM, of magnetite concentrate and 6Mtpa of high which underpins the first five-and-a-half years of grade pellets. The first shipment of ore occurred operations. Based on the total mineral resource on 2 December 2013. estimate, the potential mine life could be more than 15 years. Approximately 110,000tpa of Expenditure: $5.2b. heavy mineral concentrate from Keysbrook will be Employment: Construction: 4000; Operation: 500 trucked 120km south to Doral’s mineral separation plant in Picton, near Bunbury, where it will be toll treated under a processing agreement. MZI plans to commence construction in late June 2014, with first production scheduled for the third quarter of 2015. The project is expected to produce 67,500tpa of leucoxene products and 28,700tpa of zircon concentrate, which will be exported from the Bunbury Port. Expenditure: $70m. Employment: Construction: 100; Operation: 50

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. 29 Committed Projects Projects Under Consideration

OIL & GAS DEVELOPMENTS AMMONIA/UREA INFRASTRUCTURE Carnarvon Basin – Greater Western Flank Shotts Industrial Park – Collie Coal to Urea Dampier Peninsula – Browse LNG Precinct Phase 1 PERDAMAN CHEMICALS AND FERTILISERS PTY LTD WA STATE GOVERNMENT WOODSIDE ENERGY Perdaman Chemical and Fertilisers Pty Ltd is The State Government is developing the The Greater Western Flank Phase 1 Project will proposing to develop a $3.5b coal to urea plant Browse Liquefied Natural Gas (LNG) Precinct develop the Goodwyn GH and Tidepole fields, at the new Shotts Industrial Park, near Collie. approximately 60km north of Broome. via a subsea tie-back to the existing Goodwyn A The plant will use proven coal gasification and By focussing development at a suitable Platform. Engineering, procurement and fabrication fertiliser production technologies. Around 2.7Mtpa location, the Precinct will minimise the activities are progressing to plan. The project of coal will be used to produce approximately environmental footprint of gas processing and remains on budget and on schedule for start-up in 2Mtpa of urea, primarily for export. The urea will be any social impacts in the region while maximising early 2016. transported to Bunbury Port by rail. A 20-year off opportunities for the local community to benefit Expenditure: $2.5b. take agreement has been signed with Incitec Pivot. from development of the Browse Basin gas The coal supply contract is yet to be finalised. fields. The Precinct will have the capacity to Carnarvon Offshore Basin – Barrow Island The company has received all its environmental accommodate at least two LNG processing – Gorgon Project and all other approvals from both the Western operations, with a combined capacity of up to GORGON JOINT VENTURE Australian and Commonwealth governments. 50Mtpa. The State Government has acquired Construction is on hold as the company is still the land for the Precinct and will secure all The Gorgon Joint Venture (GJV) made its final looking for a reliable domestic coal supply prior to relevant approvals to ensure the Precinct is investment decision on the Gorgon Project in achieving its financial investment decision. ‘project ready.’ mid-September 2009. The Foundation Project on Barrow Island is a three train LNG development Expenditure: $3.5b. Pilbara – Anketell – Anketell Port and SIA with a nameplate capacity of 15.6Mtpa and Employment: Construction: 2000; Operation: 200 (Strategic Industrial Area) includes a domestic gas plant capable of delivering WA STATE GOVERNMENT at least 300TJ/d of gas to the mainland. Cost HEAVY MINERAL SANDS estimates for the project construction have been The Anketell project involves the establishment reassessed at $61b (US$54) following a cost Shark Bay – Coburn Zircon Project of a multi-user, multi-commodity deep water port and associated strategic industrial area and schedule review conducted by Chevron GUNSON RESOURCES LIMITED in December 2013. The project involves the (SIA) at Anketell, located 30km east of Karratha processing of gas from both the Gorgon and Gunson proposes to develop the Coburn on the Pilbara coast. The port and associated Jansz/Io gas fields and includes potentially the zircon project, located south of Shark Bay infrastructure will be a proponent-funded but State largest commercial CO2 geosequestration project and approximately 250km north of Geraldton. owned Port which will be managed and operated in the world. The project obtained State and It contains total ore reserves of 308Mt at an under the Port Authorities Act 1999. The strategic Commonwealth environmental approvals in August average grade of 1.2 per cent heavy minerals, industrial land will fall under the jurisdiction of the 2009. On-island activity started in late 2009 and all of which lie within the portion of the project Western Australian Land Authority (LandCorp). the major construction work for the processing area that has received government environmental During its initial phase, it is expected that Anketell plant commenced in 2011. Plant start-up and first approvals for mining. At a mining rate of 23.4Mtpa, will be an iron ore export facility and that, at its gas is planned for mid-2015, with the provision of the project is expected to produce 49,500tpa peak capacity, not less than 350Mtpa will be domestic gas by 31 December 2015. of zircon, 109,000tpa of chloride ilmenite and exported to customers, mainly in Asia. A number 23,500tpa of a mixed rutile-leucoxene over its of iron ore producers with mining assets in the Expenditure: $61b. 19 year mine life. Pilbara have expressed interest in using the Employment: Construction: 6250; Operation: 300 Expenditure: $202m. planned facilities at Anketell. It is likely that the Port will be developed in stages to accord with Pilbara – Wheatstone LNG Development Employment: Construction: 170; Operation: 110 the development of the various mining operations CHEVRON AUSTRALIA PTY LTD which are located throughout the Pilbara. Chevron Australia Pty Ltd is currently constructing an LNG plant, domestic gas plant and port facilities at the Ashburton North Strategic Industrial Area near Onslow for its Wheatstone project. The project will initially have two LNG trains with a combined capacity of 8.9Mtpa, expandable to five or six trains with a total capacity of 25Mtpa, and a 250Mcf per day domestic gas plant connected to the Dampier-to-Bunbury Natural Gas Pipeline. The first export of LNG is scheduled for late 2016. Expenditure: $29b. Employment: Construction: 6500; Operation: 400

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

IRON ORE Yilgarn – Deception Iron Ore Deposit OIL & GAS DEVELOPMENTS CLIFFS ASIA PACIFIC IRON ORE PTY LTD Mid West Region – Extension Hill Canning Basin – Buru Canning Basin Tight Gas Magnetite Mine Cliffs proposes to expand its Koolyanobbing BURU ENERGY ASIA IRON Operation to include an additional iron ore mining area at the Deception Deposit, located The Canning Basin is home to what is potentially Asia Iron has primary environmental approval approximately 150km north of Southern Cross. the largest onshore resource of unconventional to produce up to 10Mtpa of magnetite The Deception Deposit contains an estimated gas in Australia. Buru Energy Limited and concentrate, which will be transported by slurry 7.1Mt of iron ore and is expected to have a mine Mitsubishi Corporation are currently investigating pipeline to the port of Geraldton for export. life of around five years. Mining of the Deception the potential of the basin’s tight gas resource The company is currently seeking secondary Deposit has environmental approval with first contained in the Laurel Formation, located 2-3km approvals and undertaking an implementation production expected in the first half of 2017. below the surface. The proposed 2014 program study for the project. will involve testing the Laurel Formation at two Expenditure: $35m. Expenditure: $2b. locations in this basin – at Yulleroo which is 80km east of Broome and at Valhalla/Asgard which is Employment: Construction: 1000; Operation: 350 320km east of Broome. Testing for this potentially NICKEL Pilbara – West Pilbara Iron Ore Project large tight gas resource will involve stimulation of the Laurel Formation using hydraulic fracturing and API MANAGEMENT PTY LTD Mt Windarra – Windarra Nickel POSEIDON NICKEL NL flowback of two existing Buru Energy exploration The Australian Premium Iron Joint Venture is wells at Yulleroo and a further two wells at Valhalla/ proposing to develop the West Pilbara Iron Ore Poseidon Nickel Ltd has submitted a project Asgard. These wells were drilled between 2010 Project. Stage 1 of the project is based on the development proposal for the redevelopment of and 2013. In preparation for the proposed 2014 production of 30Mtpa of direct shipping iron ore the Mt Windarra underground nickel mine, the program, Buru Energy has undertaken geological from its Red Hill and Mt Stuart deposits located development of the new Cerberus underground modelling, building capacity and accessing world 35-80km south-west of Pannawonica. The ore nickel mine, the construction and commissioning class and internationally experienced companies will be transported by a new heavy haul railway for of a nickel sulphide concentrator, a gold tailings to support Buru Energy’s programs. The company export via the proposed multi-user 350Mtpa port re-treatment plant and associated project has undertaken hydrogeological assessments and at Anketell. Subject to the successful completion infrastructure at Mt Windarra. Subject to obtaining is collecting robust baseline datasets to support of feasibility and environmental studies, and receipt all relevant approvals and project finance, the rigorous environmental approvals process of government regulatory approvals, the company Poseidon is forecast to commence construction currently underway. Buru Energy is also currently anticipates construction to commence following in 2014. undertaking an extensive program of engagement a decision to proceed by the joint venturers and Expenditure: $250m. with Traditional Owners, pastoralists and the completion of funding arrangements. Primary State Employment: Construction: 80; Operation: 180 general Kimberley community, ensuring they and Federal environmental approvals for the mine have access to comprehensive information about and rail elements of the project were received in the proposed activities, including the fracturing December 2011, and for the first stage of Anketell process and environmental safeguards, as well Port in the first half of 2013. as independent, up-to-date advice regarding Expenditure: $7b. the proposed program. The results of the 2014 Employment: Construction: 3500; Operation: 1000 exploration program will assist Buru Energy’s understanding of the commercial potential of the Laurel Formation as a significant and strategic tight gas resource to Western Australia. Canning Basin gas is destined for the domestic market. The development of the gas is under the Natural Gas (Canning Basin Joint Venture) Agreement Act 2013, which targets the delivery of at least 1,500PJ of gas into the WA domestic gas market over a 25-year period.

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This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. 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 investment charge from the Internet by visiting the destination. There is more than A$130 billion worth of projects either committed or under website of the Department of Mines and consideration for the State during the next few years. These would create more than Petroleum at: www.dmp.wa.gov.au 39,000 construction jobs and more than 12,000 permanent jobs.

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. All currency figures are in Australian dollars as at 1/04/2014

Project Value Employment (estimated A$m) Construction Permanent

Prospect Iron and Steel Subscription/Change of address ABN: 69 410 35 356 API Management Pty Ltd – West Pilbara Iron Ore Project 7000 33500 1000

Asia Iron – Extension Hill Magnetite Mine 2000 1000 350

BHP Billiton Iron Ore – Port Blending 1250 2100 720 and Rail Yard Facilities

Name: BHP Billiton Iron Ore – Shiploaders 1 and 2 Replacement 380 500 n/a

CITIC Pacific – Cape Preston Mine & Processing Projects 5200 4000 500 z

Fortescue Metals Group – Chichester Expansion and 9000 7000 6000 Solomon Mine Project Position: Roy Hill Holdings Pty Ltd – Iron Ore Mine – Roy Hill 9900 3600 2000

Organisation: Sub Total 34730 21700 10570

Oil, Gas and Condensate

Address: BHP Billiton – Macedon 1500 700 25

Browse LNG Precinct n/a n/a n/a z Buru Energy – Buru Canning Basin Tight Gas n/a n/a n/a

Chevron – Wheatstone LNG 29000 6500 400

Type of business: Gorgon Joint Venture Gas Processing Project 61000 6250 300

Woodside Energy – Greater Western Flank Phase 1 2500 n/a n/a

Phone number: Sub Total 94000 13450 725

Other

Email AngloGold Ashanti/Independence Group 700 700 400 – Tropicana Gold Project Please tick the appropriate box Please add me to your mailing list to receive my one Ashburton North Strategic Industrial Area n/a n/a n/a year subscription of Prospect magazine. one year @ $12 (incl. GST) CSBP – Kwinana Ammonium Nitrate Facility Expansion 550 500 10

My cheque, made out to the Department of Mines and Newmont Boddington Gold Pty Ltd n/a n/a 650 Petroleum, is enclosed OR please debit the amount to – Boddington Gold Mine my credit card using the following details: Type of card: Visa Bankcard Mastercard Ord East Kimberley Expansion Project 517 761 n/a Perdaman Chemicals & Fertilisers – Coal-to-Urea Plant 3500 2000 200 Expiry date Yara International ASA – Yara Pilbara Nitrates 800 600 65 This form will become a tax invoice for GST purposes when payment is made. Sub Total 6067 4561 1325 Change of address (please make changes required on one of your old labels). TOTAL 134797 39711 12620 Please photocopy or cut coupon and mail to: Prospect subscriptions Information Centre Department of Mines and Petroleum Mineral House, 100 Plain Street East Perth, Western Australia 6004 MINERAL SYMBOLS PETROLEUM SYMBOLS COMMODITIES Major Resource Projects — June 2014 INSET C Precious metal Gas field Au...... Gold Au (or as shown) Oil field Cr...... Chromium 0 5 km Cu...... Copper Wonnich Steel alloy metal Oil and gas field Fe...... Iron Northwest Shelf / Pilbara Region Wonnich Deep Ulidia Ni (or as shown) Significant gas discovery Fletcher Bambra Li...... Lithium Speciality metal Processing plant Exeter Ti–Zr (or as shown) Lst...... Limestone INSET B Lee Oil / gas pipeline, operating Bambra East Base metal LNG...... Liquefied natural gas Persephone Hermes Lambert Deep Rose Oil / gas pipeline, proposed Mo...... Molybdenum Eaglehawk Harriet Iron Larsen Athena Lambert North Alkimos Monty Ni...... Nickel Noblige Searipple Egret Larsen Deep Angel Uranium INFRASTRUCTURE Pb...... Lead Thebe Capella Josephine Cossack Baker Industrial mineral Power plant Pd...... Palladium North Rankin Wanaea Pt...... Platinum Perseus Agincourt Processing plant Simpson Ta...... Tantalum Chandon Gaea Hurricane South Plato Irrigation / water / desalination Ti...... Titanium Keast Goodwyn |n Port Echo/Yodel Little Sandy Pedirka V...... Vanadium Yellowglen Tidepole Zn...... Zinc Dockrell Double Island Victoria Urania Zr...... Zirconium Pemberton Dixon / West Dixon Wheatstone Sage Gorgon LNG Jansz Pluto West Cycad Iago Saffron Geryon Eris Barrow Island Io South Wilcox Reindeer Narvik Xena Gnu Barrow I Winchester Caribou Brunello Corvus Orthrus Chrysaor/Dionysus Maenad Wandoo Julimar Port Hedland Salt Ridley Acme Tusk |n Achilles West Tryal Rocks Port Hedland Clio Oryx Stag Equus Pontus SEE INSET C Chamois Gorgon John Brookes Yarrie Satyr Rosella Yara Pilbara |n Maitland NWSV LNG Fertilisers Cape Lambert Pluto LNG |n n |n Anketell Balla Balla | Tabba Tabba Ta Spar Halyard Dampier Yara Pilbara Sappho Nitrates Cape Lambert Dampier Salt Salt Creek Zn Cu Pb Balla Balla Fe V Ti Sherlock Bay Bianchi Whim Creek Cu Zn Pb Spinifex Ridge Cape Preston |n|n Barrow I Spinifex Ridge Mo Cu Cape Preston East Devil Creek Gas Maitland River Tallaganda Radio Hill Pasco Pilgangoora Li Whundo Zn Cu Flinders Shoal Sino/Citic Abydos Sulphur Springs Zn Cu Pb Balmoral South Munni Munni Pt Pd Wodgina Ta Wodgina North Star hematite North Star magnetite Glacier Valley

Nasutus Mardie South Chervil Cyrano Coniston Novara Australind Cadell Eskdale Van Gogh Saladin Mt Webber Vincent Crest McPhee Creek Enfield Stickle Corowa Cookes Creek W Stybarrow Cowle Pyrenees Outtrim Laverda Scafell Roller Skate Blencathra |n Onslow Middle Robe Mesas Ravensworth Macedon Coaster Mesa A – Warramboo Crosby |n Onslow Salt Black Pearl Mesa J Leatherback Ashburton North Wheatstone LNG Macedon Gas Nullagine/Millennium Bungaroo Creek Caliwingina |n Exmouth Bungaroo South Investigator Rivoli Cape Range Lst Pilbara/Flinders Firetail Murrays Hill Solomon Kings West Pilbara Homestead Silvergrass Cloud Break Christmas Creek Nammuldi Roy Hill Manyingee Mt Stuart Koodaideri Rough Range Marillana/Brockman Yanrey Paulsens Brockman 4 Marillana Marandoo Project labels: Western Turner Syncline Yandi/BHPB Nyidinghu Beasley River Western 4 Iron Valley PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL OR Tom Price Phils Creek ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Rocklea CID Yandicoogina/HI Mining Area C PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Railway Jinidi $A20 MILLION ARE SHOWN IN RED Rocklea–Hardey Southern Flank Hope Downs 1 PROJECTS UNDER CARE AND MAINTENANCE ARE SHOWN IN PURPLE Rhodes Ridge Ophthalmia Data for offshore Commonwealth-controlled waters is up-to-date as of December 2013. Turee Syncline Hope Downs 4 Western Range West Angelas Enquiries for latest information for Commonwealth-controlled waters is available from National Offshore Petroleum Titles Administrator (NOPTA) at Paraburdoo Eastern Range Giles Mini 24–25 Channar Mt Whaleback 18 Wheelarra JV 35 Jimblebar JV 0 25 50 75 100 Coobina Cr Kilometres Carley Bore Major Resource Projects — June 2014

INSET A Balline Grt Mt Magnet Project labels: Laminaria East 0 50 km Yogi Port Gregory Grt Bilberatha Hill PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Mumbida wind OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Alinta wind Kirkalocka |n Deflector–Gullewa Oakajee Eradu Pig Iron PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Geraldton |n Greenough River solar Shine Golden Grove $A20 MILLION ARE SHOWN IN RED Narngulu synthetic rutile Mount Horner Koolanooka Cu Zn Pb Geraldton brick Irwin River Mungada PROJECTS UNDER CARE AND MAINTENANCE ARE SHOWN IN PURPLE Dongara Corybas Karara Eremia Centauri 1 Magnetite Range Hovea Apium Koolanooka South Data for offshore Commonwealth-controlled waters is up-to-date as of December 2013. Xyris Dongara Three Springs Tlc Extension Hill hematite Jingemia Tarantula Enquiries for latest information for Commonwealth-controlled waters is available from Cliff Head Extension Hill National Offshore Petroleum Titles Administrator (NOPTA) at Prometheus Evandra Beharra Springs magnetite Petrel Redback South Beharra Springs N Redback Eneabba Frigate Echuca Shoals Tern Crown Badgingarra wind Prelude Mimia Dandaragan K Phos Kronos Cornea Emu Downs wind Moora Chert Ichthys West Atlas Cooljarloo/Tronox Scott Reef Cape Bougainville Blacktip Cataby Burnside Ichthys Kwinana–Rockingham Yerecoin Brecknock Alumina refinery Gingin West Brecknock South Gwydion Boonanarring Turtle Ammonium nitrate Wandoo Mitchell Plateau Oil refinery Neerabup/Newgen Chandala mineral separation Cement and lime and synthetic rutile Wesbeam timber Chlor alkali Malaga brick Felicitas Middle Swan brick Desalination Caversham tile Ord Stage 2 Fused alumina PERTH Midland brick Wyndham |n Fused zirconia Fremantle |n Airport brick Cockatoo Island Ord Stage 1 LNG |n Armadale brick Bulk Terminal G Cardup brick Irvine Island Sorby Hills Pb Zn Cu LPG Keysbrook Koolan Island Nickel refinery Pinjarra Al Huntly Ord River Hydro Energy Wagerup Al Sparks Kln Power station Willowdale Speewah V Ti Fe Speewah Fl Southern Seawater Boddington Au Cu Sodium cyanide desalination Marradong Oobagooma Ridges Titanium pigment Chlor Alkali Saddleback Argyle Zirconia Silicon smelter Kemerton Sisd Titanium pigment Smoke Creek Worsley Al Bluewaters 1–2 n Point Torment Bunbury |n Derby | Lloyd Cristal mineral separation Collie Dampier West Terrace Muja Premier Ewington Browse LNG Precinct Boundary Savannah Wespine timber Sundown Ellendale Wesfi timber Dardanup Collie – Shotts urea McIntosh Gr Tutunup Blina Copernicus Wonnerup Chicken Creek |n Canning Basin tight gas Panton Pt Pd Ta Muja South Flat Rock Broome Ungani Yoongarillup wind Valhalla Whicher Range Tutunup South Greenbushes Li Duchess–Paradise Koongie Park Zn Cu Pb Hastings REE Nb Zr Lamboo Pictor East Kapok West – Lennard Shelf Pb Zn Ag Browns Range REE SEE INSET B Admiral Bay Zn Pb (inside cover) Thebe Kentish Knock Brederode Coyote Alaric Arnhem |n Scarborough MINERAL SYMBOLS Pinhoe n |n |n| |n Precious mineral |n Dmd Precious metal Au (or as shown) Woodie Woodie Mn Steel alloy metal Telfer Au Cu |n|n Ni (or as shown) Cookes Creek W Nifty Cu O'Callaghans W Cu Zn Pb Speciality metal |n Mesa – Ant Hill Mn Ti–Zr (or as shown) Yeneena Cu Maroochydore Cu Co Kintyre Base metal Iron Nicholas Downs Mn Alumina Bx (or as shown) Coal and lignite Davidson Creek Uranium Robertson Range Industrial mineral Prairie Downs Zn Pb Ag Processing plant

Cape Cuvier |n Ilgarari Cu PETROLEUM SYMBOLS Lake MacLeod Gp Butcherbird Mn Lake MacLeod Salt Gas field Abra Pb Cu Zn Oil field Beyondie Oil and gas field Plutonic Dome Grosvenor Plutonic Significant gas discovery Glenburgh Telecom Hill Thaduna Cu Ag Significant oil discovery Peak Hill Significant oil and gas discovery DeGrussa – Doolgunna Cu Au Processing plant Jack Hills |n Andy Well Wiluna West Musgrave Wingellina Oil / gas pipeline, operating Jundee–Nimary Shark Bay Salt Paroo Station Pb Oil / gas pipeline, proposed Gabanintha V Ti Fe Matilda Meekatharra Hinkler Well Weld Range Wiluna West Lake Way Coburn Hillview INFRASTRUCTURE Yeelirrie Honeymoon Well Nowthanna Power plant Hollandaire–Eelya Cu Au Ag Lake Maitland Big Bell Gidgee Cliffs Mt Keith Radio astronomy Bronzewing Great Fingall Yakabindie Barrambie Odysseus–Cosmos Moolart Well Irrigation / water / desalination Murchison / Silver Lake V Ti Fe Leinster Port Lawlers Darlot Garden Well, Rosemont Victory Bore Agnew–Emu Ben Hur – Thatcher Soak SEE Mag V Lawlers MgCO3 Bentley Zn Pb Cu Epsilon Yamarna COMMODITIES INSET A Marshall Pool Mt Morgans Windarra Jaguar Zn Cu Pb Ag...... Silver Windimurra Murrin Granny Smith – Wallaby |n V Mag Fe Mt Forrest King of Murrin Brightstar Alpha Al...... Alumina Cashmere Downs the Hills Laverton/Focus Au...... Gold |n Mt Weld Phos Sons of Gwalia Cyclone Bx...... Bauxite Mt Bevan NiWest MgCO3 Mt Weld REE Co...... Cobalt Mt Mason Mt Ida Red October Sunrise Dam Fortitude Tropicana Cu...... Copper Second Fortune Dmd...... Diamond Lake Giles Highway Scotia Jump Up Dam Fe...... Iron Deception Goongarrie Cawse Fl...... Fluorite Windarling Aphrodite Kalgoorlie North Mulga Rock Gp...... Gypsum Range Canegrass Frogs Leg South Laverton – Carosue Dam Grt...... Garnet Mt Jackson Siberia Lindsays Ponton Carina Paddington Kanowna Belle K...... Potassium Kundana – Kundana East Superpit Kln...... Kaolin Castle Hill Nimbus–Boorara Ag Au Zn Koolyanobbing White Foil Kalgoorlie nickel smelter Li...... Lithium Blair Mt Monger Bullabulling Aldiss LNG...... Liquefied natural gas Edna May Coolgardie–Redemption Randalls LPG...... Liquefied petroleum gas Carnilya Hill Nepean Kambalda nickel concentrator MgCO3... Magnesite Marvel Mt Marion Li Ta Mica Bald Hill Ta Loch South Kal Mn...... Manganese Nevoria St Ives Ni...... Nickel Collgar Mt Caudan Long–Victor Nova wind Mariners Lanfranchi Nb...... Niobium PERTH |n Bounty Mt Thirsty Trident Pb...... Lead |n Maggie Hays Eucla West Pd...... Palladium Flying Fox Lounge Lizard Mt Henry Phos...... Phosphate Spotted Quoll Pt...... Platinum REE...... Rare earth elements Salmon Gums Sisd...... Silica sand Ta...... Tantalum |n Scaddan Ti...... Titanium Tlc...... Talc Phillips River – Trilogy Au Cu Ravensthorpe V...... Vanadium |n Esperance 0 100 200 300 400 W...... Tungsten Zn...... Zinc Zr...... Zirconium Southdown Kilometres

Albany wind |n Albany