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

Manufacturing excellence

Western Australian manufacturers tackle the resources expansion Print post approved PP 665002/00062 approved Print post DEPARTMENT OF INDUSTRY AND RESOURCES Investment Services 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 3333 • Fax: +61 8 9222 3862 Email: [email protected] www.doir.wa.gov.au INTERNATIONAL OFFICES Europe European Office • 5th floor, Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 Email: [email protected] India — Mumbai Western Australian Trade Office 93 Jolly Maker Chambers No 2 9th floor, Nariman Point • Mumbai 400 021 • INDIA Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 From the Director General Email: [email protected] India — Chennai Western Australian Trade Office - Advisory Office 1 Doshi Regency • 876 Poonamallee High Road Kilpauk • Chennai 600 084 • INDIA Tel: +91 44 2640 0407 • Fax: +91 44 2643 0064 Planning for growth Email: [email protected] Indonesia — Jakarta Western Australia Trade Office As the new Director General of the Department of Industry Wisma Budi Building • floor 5 Suite 504 and Resources (DoIR) it is a pleasure to welcome you to JI H R Rasuna Said Kav C-6 Kuningan, Jakarta 12940 • INDONESIA my first issue of Prospect magazine, which, you may have Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 noticed, has a new and more contemporary design. Email: [email protected] Japan — Tokyo Government of Western Australia, Tokyo Office I come into the position at an interesting time, 13th floor, Fukoku Seimei Building with the resources industry driving the Western 2-2-2 Uchisaiwai-cho Chiyoda-ku • TOKYO 100-0011 • JAPAN Australian economy’s stellar growth. Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 Email: [email protected] Japan — Kobe One of my priorities will be for DoIR to ensure this Western Australian Government Office expansion is managed in a way that is environmentally 6th floor, Golden Sun Building • 4-3-6 Nakayamate-dori Chuo-Ku • Kobe 650-0004 • JAPAN and socially responsible, and that its benefits Tel: +81 78 242 7705 • Fax: +81 78 242 7707 are shared by all Western Australians. Email: [email protected] Malaysia — Kuala Lumpur Western Australian Trade Office The success of such a plan will largely depend on how well 4th floor, UBN Tower • 10 Jalan P Ramlee we can engage and interact with industry and the community. KUALA LUMPUR 50250 • MALAYSIA Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 Email: [email protected] This issue of Prospect features an update on a project Middle East — Dubai that is doing this with great success – the Memorandum Western Australian Trade Office • Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES of Understanding between the State Government and Rio Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Tinto Iron Ore for Aboriginal employment in the Pilbara. Email: [email protected] People’s Republic of China — Shanghai Western Australian Trade & Investment Promotion In planning for the future, it is encouraging to see that Room 2208 • CITIC Square Western Australia’s manufacturing sector is keeping pace 1168 Nanjing Road West SHANGHAI 20004 • PEOPLES REPUBLIC OF CHINA with the resources industry’s output, as the stories on Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Fenner Dunlop and Pacific Industrial Company attest. Email: [email protected] People’s Republic of China — Hangzhou Western Australian Trade & Investment Promotion New energy developments such as geothermal Hangzhou Representative Office energy and tight gas featured in this issue will form Room 1705 • World Trade Office Plaza another important part of the way forward. Zhejiang World Trade Centre 122 Shuguang Road • Hangzhou 310007 PEOPLES REPUBLIC OF CHINA With major expansions tipped for iron ore, natural gas Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Email: [email protected] and other resources sectors during the next few years, all South Korea — Seoul Western Australians can look forward to an exciting future. Western Australian Trade & Investment Office 11th floor, Kyobo Building 1 Jongro 1-Ga, Jongro-Gu Seoul 110-714 • SOUTH KOREA Anne Nolan Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected] DIRECTOR GENERAL Taiwan — Taipei Australian Commerce & Industry Office 27th floor, No 9 Song Gao Road, Taipei, 11073 • TAIWAN Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 Email: [email protected] Hong Kong Australian Trade Commission Hong Kong Office Rm. 2404, 24/F., Harbour Centre 25 Harbour Road, Wan Chai • HONG KONG Tel: +852 2588 5300 • Fax: +852 2827 4145 Prospect Email: [email protected] Western Australian Prospect magazine is published Thailand — Bangkok quarterly by the Western Australian Government’s Department of Industry and Resources (DoIR). WA Business Development Manager Editorial management: James Bowen, DoIR Communications Australian Trade Commission • Australian Embassy and Marketing Division. Tel: (08) 9222 3804 • Fax: (08) 9222 3069 37 South Sathorn Road • Bangkok 10120 • THAILAND Disclaimer Cover photo: Fenner Dunlop equipment Tel: +662 344 6337 • Fax: +662 344 6306 Prospect has been compiled in good faith by the Department in use at BHP Billiton’s Yandi mine Email: [email protected] of Industry and Resources. Opinions expressed in Prospect are those (photograph owned and provided by United States — Los Angeles of the authors and do not necessarily represent the views, or have Western Australian Trade and & Investment Office the endorsement of the Department of Industry and Resources. The Leighton Contractors Pty Ltd). Howard Hughes Centre, 6080 Centre Drive, 6th Floor Department of Industry and Resources has used all reasonable endeavours to ensure the material contained in this publication is correct, but it is Los Angeles, CA 90045 • USA intended to be general in nature. No representation is made with regard Tel: +1 5625924342 to the completeness or accuracy of the information contained herein. Email: [email protected] The Department of Industry and Resources disclaims any or all liability Production of this issue of Prospect commenced prior to the for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication Western Australian election on 6 June. should make and rely on their own enquiries, research and judgements in making decisions affecting their own or any other persons interest. State Government personnel or policies mentioned within may therefore have changed by the time of publication. www.doir.wa.gov.au 6-7 Hot topic 16-17 Iluka’s vision Development of Western Mineral sands producer Australian geothermal energy works to protect its position gathers steam. in Mid West region

10-11 Fossil hunters 20-21 Environmental excellence A team of international A strong pool of nominees explorers search for the contested this year’s Golden dawn of life in the Pilbara Gecko Awards

14-15 Indigenous opportunities 22-23 FMG expands Rio Tinto’s Aboriginal employment Fortescue Metals Group program on track to achieve continues to grow after its important goals first shipment of iron ore

Manufacturing excellence Fenner Dunlop and Pacific Industrial Company are two Western Australian manufacturers rising to the challenge of servicing the State’s expanding resources industry. Pages 2-4 Lauren Kane, Department of Industry and Resources steel cord belt to WA service global industry Western Australia will soon be Fenner PLC Chief Executive Mark conveyer and materials technology, home to the world’s largest and Abrahams said Australia was an and a modern training school. most technologically advanced ideal country for the development “The centre of excellence and training conveyer belt manufacturing facility. due to its central location to growth markets in China, India and Africa. school will have many benefits for Western Australia including increasing Fenner Dunlop Australia plans “Australia itself is also an important the State’s technology capability, to construct a new A$70 million market and our Australian team headed and increasing opportunities for plant to produce and supply high by David Landgren has proven know- technology transfer,” Mr Collins said. performance heavyweight conveyor how and expertise to ensure they build belting using steel reinforced rubber, the best conveyor belts anywhere “This has the potential to provide also known as steel cord belt. in the world,” Mr Abrahams said. new opportunities for the capture and retention of local talent, and the The facility will be the first new Mr Collins said having easy access development of new expertise.” conveyor belt plant built in Australia to high quality conveyor belts would in more than 60 years and will service create significant benefits for the Fenner Dunlop Australia Executive the global resources industry, with Western Australian resources industry. Director David Landgren said as well a particular focus on the Western as a state-of-the-art press to build the Australian iron ore sector. “Having a local manufacturer will biggest and best quality belt, the new dramatically reduce lead times plant would have the right front-end Construction on the 4.6 hectare associated with transportation and and back-end systems and processes Kwinana site is expected to begin soon delivery, as well as significantly to ensure exacting tensioning methods, and is scheduled to be completed by reduce down-times associated with delivering flawless belts even quicker April 2009, with production planned to belt installation, belt replacement than previously considered possible. start in the second quarter of 2009. or belt servicing,” he said. “Fenner Dunlop has selected world- The Investment Attraction Division “This will result in increased production leading German and Italian technology of the Department of Industry and from mine sites, improved materials for the plant,” Mr Landgren said. “The Resources (DoIR) worked with Fenner handling at ports and increased export steel cord line comes from Siempelkamp Dunlop to secure this significant capabilities for resources companies.” and has the world’s largest press investment for Western Australia. The new Fenner Dunlop facility will with dimensions spanning 3420 mm and a press length of 18.5 m. DoIR Acting Director of Investment create conveyer belts that are wider than any other belt in the world. It will Attraction Geoff Collins said it was “Due to the expertise required to produce steel cord belt and rubber ply a very exciting project that would make such an important belt for belt up to 3200 mm wide and 50 mm bring many benefits to the State. our customers, these kinds of thick. belts must be made using a highly “This important investment was skilled and qualified team, just like attracted at no cost to the State The facility’s initial production those in Australia,” he said. Government, and will result in a capacity of 330,000 m² is equivalent to 103 km of 3200 mm belt. contribution of A$35 million to our “Our customers demand exacting economy each year,” he said. The installation of wider belts on standards, not just for excellent belts, mine sites and at port facilities as but also excellence in the manufacturing “The final investment will be around a result of the facility will create process and value added service. A$70 million and will create 50 productivity gains due to the construction jobs and 30 permanent “Our safety standard as well as increased throughput of materials. full-time jobs, as well as an additional our adherence to quality processes 150 jobs for on-site maintenance and This production of wide conveyor means that using expert workers in equipment servicing to clients. belts will also add a new capability industrialised countries is the best way to the Western Australian to guarantee we meet their growing “It will also help generate significant manufacturing industry. service and performance expectations.” new export revenue for the State from overseas markets including the In addition to the manufacturing This project represents a long-term German coal and South American facility, Fenner Dunlop has also commitment by Fenner Dunlop to iron ore markets, as well as a committed to a research and Western Australia, with the plant having number of Asian markets.” development centre of excellence for an operational life of up to 50 years.

2 Prospect FAR LEFT Workers at Fenner Dunlop’s new A$70 million plant will service the Western Australian iron ore sector.

LEFT Fenner Dunlop’s new centre of excellence and training school will create new expertise and increase worker retention.

BELOW The new Fenner Dunlop facility will create conveyer belts that are wider than any other in the world.

Fenner Dunlop’s new facility • Cost: A$70 million • Expected completion: April 2009 • Production capacity: 330,000m², or 103 km of 3200 mm belt • Employment: 230 construction, full-time, maintenance and service jobs • Economic contribution: A$35 million per annum

3 Prospect WA manufacturing expertise on world stage Western Australia’s growing reputation in the “Winning projects global manufacturing industry has been further like this against global enhanced by a local company being selected from an international tender to fabricate competition helps to equipment for Fortescue Metals Group (FMG). highlight Western Australia’s manufacturing Pacific Industrial Company (PIC) PIC, established in 1969 and was selected by a North American based at Western Australia’s capabilities and ensures engineering designer to produce a Naval Base, is involved in all mobile conveying system for FMG aspects of steel fabrication and the State is on the – the first of its kind to be used construction including engineering, in Australia’s iron ore industry. procurement, fabrication, installation, global bid list.” commissioning, and related electrical, The automated system will be used instrumental and civil works. Its in FMG’s Pilbara operations, and main clients are involved in the is expected to provide significant resources and industrial sectors, operational savings. It will allow but it has a broad customer base. continuous conveying and stacking, with a capacity of 8000 tonnes per Department of Industry and hour. Resources, Industry Development Deputy Director General Joe PIC Managing Director Marco Mosole Ostojich said the fact that PIC had said the company was pleased to been selected by a North American have won the project against stiff engineer from a global tender local and international competition. was testament to the outstanding quality of local fabrication. “PIC committed a great deal of energy and resources to bid for this project “It’s great to see that Western and it has clearly paid off,” he said. Australia’s involvement in local projects is continuing to increase “We undertook several trips to North and I commend the global alliance America to meet with engineering established between PIC and its designer FLSmidth RAHCO. northern associate, which has “Serious effort was expended in allowed the State to participate in winning the client’s confidence and the local FMG project,” he said. convincing them that a project of “Participation by Western Australia’s this size and importance could be manufacturing industry in projects undertaken and completed halfway such as this helps clear false around the world with minimal input perceptions that local industry is fully from the client, other than the design. committed and has limited capacity. “Winning projects like this against “It also helps our State to global competition helps to highlight create a competitive edge in Western Australia’s manufacturing the global marketplace.” capabilities and ensures the State is on the global bid list.” Installation of the mobile conveyer system at FMG took place in August Mr Mosole said PIC’s achievement with commissioning scheduled in successfully completing the for late November. A second mobile conveying system on time, system is scheduled to come on budget and according to quality on-line four months later. Pacific Industrial founder Erasmo Mosole surrounded standards, would assist other by a section of the Western Australian-fabricated Western Australian companies mobile conveyor. bidding for international projects.

4 Prospect What is tight gas? Tight gas refers to gas that is found in Industry rocks with low permeability and requires specialised techniques and equipment for extraction. While tight gas reserves are yet to be developed in Western Australia, this type of energy currently poised supplies the United States with 30 per cent of its gas.

to drill Specialist drill rigs could allow Latent Petroleum and Alcoa to develop Western Australia’s first down on commercial tight gas reserve. tight gas

Tight gas looms as an exciting new “They included both local and Drilling is expected to commence in the Western Australian resource as part international speakers from a range fourth quarter of 2008 when a new rig of efforts to increase and diversify of petroleum companies such as ARC will arrive from the USA, along with other the State’s energy supplies. Energy, Latent Petroleum, Origin and equipment from overseas. Chevron, through to representatives of Earlier this year Latent Petroleum and major petroleum equipment suppliers Latent Managing Director Stephen Alcoa announced they had formed a including Baker-Hughes, Halliburton, Keenihan said the recent price rise joint venture to appraise and develop the GMI and Schlumberger.” for Western Australian domestic gas, combined with the successful application Warro gas field near Jurien. If successful Mr Tinapple said the interest in the of appropriate technology and Alcoa’s this would be Western Australia’s first workshop indicated the importance of project to develop tight gas, which is developing alternative sources of energy long history in underpinning energy found in low permeability rock and must supply in Western Australia. infrastructure, encouraged Latent’s be extracted with specialised equipment. investigation of the Warro field. “We are looking down the barrel of a The Department of Industry and potential domestic gas shortfall from Latent is hoping to begin gas production Resources (DoIR), in partnership with as early as next year to 2012, and tight by the first quarter of 2009, allowing more the Western Australian Energy Research gas has the potential to be a significant gas to soon be pumped into South West Alliance, is also focusing on increasing supply alternative for the State,” he said. homes and businesses. interest in the sector. The organisations The workshop was part of DoIR’s strategy DoIR’s Petroleum and Royalties Division hosted a tight gas workshop in August, of developing upstream energy security has met with key participants in the tight bringing together all parties that have an through creating alternative sources of interest in tight gas development. gas industry to ascertain tangible ways supply. of assisting industry in the exploration “The WA Tight Gas Workshop provided The three fields of Warro, Whicher Range and development of tight gas resources. a forum for industry, research and West Erregulla could produce up to The department has also been actively organisations and government to network 12 trillion cubic feet of tight gas – enough identifying unconventional gas acreage and discuss Western Australia’s tight gas to satisfy the State’s needs for up to 30 industry,” DoIR Petroleum and Royalties years. blocks and developing them for release. Director Bill Tinapple said. The Warro field 200 km north of Perth Last year it released the West Erregulla “It was the first time all principal is about 7000 hectares in size and is field and awarded it to Warrego Energy technical, business, financial and estimated to contain between two and Limited, while Whicher Range is government tight gas proponents were four trillion cubic feet of recoverable gas, being considered for extended assembled in the one place. about 4 km below the surface. production tests. 5 Prospect Development of geothermal infrastructure in the Pilbara and Gascoyne regions could provide a clean source of energy for mining and petroleum projects.

Geothermal energy a hot option for Pilbara and Gascoyne Plans for a major geothermal amounts of renewable energy to of the area’s potential, the nature of energy industry in Western meet Western Australia’s growing government requirements and the Australia have been bolstered by demand for green power. potential market for energy. the release of a second acreage “It could supply remote and rural “The financial markets have area for exploration, in the communities and operations with deteriorated significantly since the Perth Carnarvon Basin. safe, distributed baseload energy,” Basin acreage was announced, making the ability for companies to raise funds The new acreage released by the Mr Bruce said. for deep geothermal exploration more Department of Industry and Resources Successful bidders for the new acreage difficult,” Mr Knights said. (DoIR) in August covers the onshore will need to drill at least one shallow Pilbara and Gascoyne regions, where well (to a depth of about 400 metres) “However on the flip-side, Australia is much of Western Australia’s resources during the first two years of the closer to reintroducing the Mandatory industry development takes place. geothermal titles, which will be awarded Renewable Energy Target, and the This new release follows successful based on work programs. Emissions Trading Scheme, which will assist.” bidding for acreage in the Perth Basin The bidding process for the Perth Basin earlier this year and is the latest release suggests there will be a positive Mr Knights said releasing the whole instalment in the systematic release industry response to the Carnarvon of Western Australia to geothermal of all onshore acreage in Western Basin acreage. That release attracted exploration allowed market forces to Australia. 64 valid bids from nine geothermal drive development, with companies Industry has been given the chance to explorers. These covered 38 application weighing up the geological potential bid for 81 application areas of about areas in a combined area of 12,160 km2. of certain areas against their economic 2 potential. 6400 km each, with applications closing The available bidding area covered 495 at 4pm on 12 February 2009. blocks of 320 km2 each in an area that “It will be the enterprising spirit and DoIR Petroleum Exploration Geologist took in Perth and important South West great persistence of what are the Richard Bruce said the new release was communities. industry’s pioneers that will drive the of strategic importance to the State. development of Western Australia’s Australian Geothermal Energy geothermal industry,” he said. “The Carnarvon Basin release is well Association Secretary Alan Knights 2 situated for Western Australia’s buoyant said geothermal energy was the only Some 627,361 km or 25 per cent resources industry,” Mr Bruce said. renewable energy that could provide of Western Australia has now been released to geothermal exploration “It is close to important regional continuous power and the only true and DoIR hopes to release the towns, ports and infrastructure and potential substitute for coal and gas- remainder of the State in two further the numerous mining, petroleum and fired power stations in southern packages during the next six months. industrial projects that operate within Western Australia. the Pilbara and Gascoyne regions.” He said industry response to the Full application details for the acreage He said geothermal energy had Carnarvon Basin release would depend can be found on DoIR’s website at: the potential to produce large on factors such as comprehension www.doir.wa.gov.au/acreage_release 6 Prospect The Geothermal Centre of Excellence will provide new knowledge to accompany the development of a geothermal industry in Western Australia. Focus on renewable energy through geothermal excellence

The opening of the Western The first will be an assessment of Perth “We have filed a provisional patent for Australian Geothermal Centre of Basin geothermal opportunities using geothermally driven desalination and Excellence this year will mark the presently available data. Researchers are preparing a patent submission for beginning of a new era of renewable will employ state-of-the-art geological, geothermal cooling, refrigeration and air- energy development in Western hydrogeological and geophysical methods conditioning.” for assessment of underground heat. Australia. The third program to be undertaken will be the identification of future potential The centre, a joint venture between Supercomputers will be utilised for through deeper exploration, and is CSIRO, the University of Western 3-D modelling of geothermal systems, expected to deliver fundamental insights Australia and Curtin University, will build making it possible to drive geothermal into the fracturing, geochemistry and capacity and knowledge within Western research into directions that were permeability of hot rocks. Australia to undertake exploration and previously out of reach in Australia. development of geothermal resources. The second program the centre will John Libby, managing director of geothermal explorer New World Energy The State Government allocated A$2.3 explore is the optimal use of geothermal Solutions, said the Geothermal Centre million in February this year to fund the resources, with a specific focus on direct of Excellence presented a fantastic centre, to accompany successive releases heat use in populated centres where opportunity for WA to develop a of geothermal exploration acreage. exploitable heat, typically from hot ground successful geothermal industry. water at about 90°C, is directly available. The centre will be led by Professor The research conducted by the centre will Klaus Regenauer-Lieb, a geothermal Professor Regenauer-Lieb said that by result in a much better assessment of the expert and Premier’s Research Fellow in exploring and utilising low-grade heat in geothermal potential of areas and will Multi-scale Earth System Dynamics,who a permeable sedimentary environment, lead to faster discovery and development said the centre would provide a seed for his team proposed to significantly of geothermal resources,” Mr Libby said. addressing a global problem. broaden the footprint of direct geothermal heat energy utilisation. “Developing countries are now “Geothermal has the greatest potential using conventional carbon dioxide of all the renewable energy sources “Direct geothermal heat use is a emitting technologies to power their and is particularly pertinent to WA neglected opportunity for displacing large industrialisation,” Professor Regenauer- as the development of geothermal scale electrical consumption. Through Lieb said. resources will increase the State’s the recent addition of new technologies, diversity of energy sources, while making “The centre will devise and disseminate usable thermal power from direct heat a significant contribution to meeting modern zero-emissions concepts with has grown exponentially,” he said. renewable energy targets,” he said. the mission of mitigating a global crisis in “The Centre of Excellence will develop the resources and environment.” Acreage for geothermal exploration was next technology for direct heat use. The released early this year, covering the The research to be undertaken at the introduction of these new technologies Perth Basin. A subsequent Carnarvon soon-to-be-opened centre is organised to the geothermal sector could trigger a Basin area has also been released into three interlinked programs. new wave of utilising direct heat. (details on page 6). 7 Prospect Eneabba Gas has ordered four GE LM6000 gas-fired turbines, similar to the units Eneabba Gas Managing Director Mark Babidge. pictured, to generate 168 MW of power. Mid West power on track with port and rail The developer of the proposed “Our freehold land also contains ten A$200 million Centauri 1 power 100 per cent-owned tenements with Rare geology station says it will need only significant coal deposits, which are being 14 months from the start of proved up as a possible source of cheaper, Greenhouse-friendly energy prime for coal construction to begin generating reserves suitable for coal gasification.” power for Mid West iron ore miners. gasification Gas for Centauri 1 will initially come from Perth-based Eneabba Gas has committed the Dampier-to-Bunbury Natural Gas The Eneabba Gas land near Dongara to building the 168 megawatt facility near Pipeline and the company has signed has a large underlying low-grade Dongara to cater to demand created by a Memorandum of Understanding with coal resource and holds Western the region’s burgeoning iron ore sector Verve Energy to swap gas for operational Australia’s only known underground and proposed Oakajee deepwater port. flexibility. resource of accessible coal seam methane gas. Oakajee Port and Rail was announced The project will be capable of in July as the preferred developer of the supplying power into the South West The company has completed a port, which is expected to gain feasibility Interconnected System but will be preliminary seven-hole drilling approval mid-way through next year. focused on the Mid West iron ore sector. program of the tenements to survey Eneabba Gas Managing Director Mark Eneabba Gas has received necessary the extent of the resource, which Babidge said his company expected to approvals for the project from the is located about 200 m below the sign “take-or-pay” power contracts with local Shire of Irwin, the Environmental surface. customers and start construction of Protection Authority and the Department Centauri 1 as soon as the go-ahead was of Industry and Resources. The survey work returned positive given for the port and its associated rail results and encouraged the company “A key approval which places Eneabba infrastructure. to seek Department of Industry and Gas in a unique position is that we are Resources approval for an expanded the only holder of an Economic Mr Babidge said the power station would drilling campaign of 20 further holes. be developed well within the expected Regulation Authority generation licence in the Mid West,” Mr Babidge said. two years it would take to construct the Eneabba Gas believes the drilling Oakajee port and rail infrastructure, and “This allows us to supply electricity program will confirm a resource that for Mid West iron mines to achieve more in the additional volumes required could have a life of 40 years. substantial tonnages. to service the region.” If coal gasification proves possible, “Eneabba Gas is the only power station Mr Babidge said the location of the the company will be able to project proponent in the Mid West proposed plant would eliminate efficiency generate and deliver electricity for a which has all necessary approvals losses for customers of up to 20 per substantially lower price. and equipment orders in place for an cent if they sourced their electricity from immediate start-up,” he said. Perth. Eneabba Gas has already held discussions with a number of mining “The Centauri 1 project is located Eneabba Gas has orders in place and infrastructure companies seeking on company-owned land, making for four GE LM6000 gas-fired turbines development quicker and easier. to generate 168 MW of power. energy in the Mid West.

8 Prospect Earth sciences converge in Perth The plenary sessions of the More than 900 geoscience showcasing a number of He said an update on the Australian Earth Sciences experts from around the issues of great importance Tropicana deposit, the most Convention attracted great to the broader community. recent large gold discovery interest. globe gathered in Perth in July to hear the latest in WA, was also presented “Plenary keynote papers by AngloGold Ashanti. research on major challenges addressed issues such as affecting life on Earth. Australia’s energy future, More than 135 presenters, recent advances in our International speakers, industry 450 papers and a wide range understanding of the geology leaders and key decision of workshops and field trips of Mars and the tsunami makers came together to were featured at the convention. risk to Australia,” he said. attend the 2008 Australian Department of Industry and Earth Sciences Convention. “The resources industry Resources (DoIR) Executive was a very significant part With the convention held in Director of Geological Survey of the program, with many Perth for the first time since presentations covering of Western Australia (GSWA), 1994, this year’s focus was on a diverse range of topics Dr Tim Griffin, said the division mineral exploration and potential surrounding the industry. had a strong presence at discoveries in Western Australia. this year’s convention. “The main theme was how to be Australian Earth Sciences smarter in applying good science “Staff from GSWA delivered Convention Program Director, to mineral exploration success. many technical talks, chaired Dr Jon Hronsky said the most Dr Nick Hayward from BHP sessions and led workshops significant aspect of this year’s Billiton presented an integrated and excursions that formed part event was the fact it was the model for the genesis of iron of the conference,” he said. only geological meeting in oxide copper-gold deposits, a Australia that brought together category which includes the “DoIR’s Petroleum and under the one roof, all the giant Olympic Dam copper-gold Royalties Division also had diverse aspects of geoscience. deposit in South Australia. an exhibition which featured “The convention is effectively geoscience services as well “It was the first time that this several major conferences as upcoming petroleum and model, which has significant wrapped into one,” he said. geothermal acreage releases.” implications for exploration, “It addresses mineral resources, had been presented publicly. Dr Griffin said by having the petroleum, geo-hazards, convention in Perth, capacity “Rio Tinto also presented CO sequestration, planetary in local geoscience and 2 the results of their research geology, studies of the earliest geoscience institutions was and development work in fossil life, environmental developing an airborne gravity successfully showcased. geology, geo-tourism and gradiometer which will be geoscience information. “The convention provided able to compete with the BHP us with the opportunity to Billiton Falcon System. The “Held every two years, highlight Perth’s exciting system is the first of its kind it’s the Olympics of and world famous geological Australian geoscience.” in providing new insights into buried geology and structure.” formations and mineral deposits The five-day convention was including evidence of the hosted by the Geological Society Dr Hronsky said exploration earliest life forms,” he said. of Australia and the Australian strategies which demonstrated “The convention also helped Institute of Geoscientists. a high level of technical work currently being conducted by cement Perth as the geoscience Dr Hronsky said the junior WA explorers, were also and resources hub in the Indo- convention succeeded in discussed. West Pacific region.” 9 Prospect Unique Pilbara fossils reveal origins of life

The expedition had to travel great distances through sparsely populated areas to visit some fossil locations.

Western Australia’s geological preserved ancient fossils and the quality European Union through the European prowess was showcased to a team of its scientific institutions,” Dr Grey said. Space Agency. of 31 international researchers “An important aspect of future research Free University of Amsterdam student that traveled to the Pilbara region in planetary science will be the ability Marineus den Hartogh participated this year to gain an insight into the to take a broad-based approach, so in the Eendracht Expedition as part of origins of life on Earth. upcoming scientists need to understand his petroleum geology studies and the framework of other related said Western Australia had significant The 12-day Eendracht Expedition, named disciplines. advantages over places such as Norway, after the ship in which Dutch explorer where he had previously conducted Dirk Hartog first surveyed the Western “Participating students were research. Australian coast, attracted postgraduate carefully selected and came from a geology and astronomy students cross-disciplinary background that “These fossils are preserved here like no and staff from the Netherlands’ Free included geologists, paleontologists, other place on Earth,” he said. University of Amsterdam and Leiden sedimentologists, astronomers, University. Participants from Curtin astrophysicists, biologists, “Because it’s a desert-like environment, University, the University of Western ecologists, organic geochemists and you don’t have the vegetation or human Australia and Monash University also mathematicians.” interference of other areas so the fossils took part. are quite easy to study.” The agenda included trips to explore The expedition was led by Geological modern stromatolites at Shark Bay and The participants also experienced Survey of Western Australia (GSWA) fossil stromatolites in the Pilbara aged first-hand the challenges of conducting Chief Paleontologist Dr Kath Grey up to 3.5 billion years old, to gain an geological studies in Western Australia. and University of California Professor understanding of the factors that gave The inclement weather forced much of Stanley Awramik, who have spent many rise to these early life-forms, as well as the original trip agenda to be modified years exploring evidence of early life in the conditions necessary to support life with trips to new and less well-known Western Australia. on other planets. localities.

“WA is at the forefront of astrobiological Dr Grey said the trip reflected a growing After successful visits to Lake Thetis studies because of its unique, well- interest in space exploration in the and Shark Bay to examine the living

10 Prospect During a break in the weather students gathered for discussions about the origins of life on Earth. stromatolites, exceptionally heavy rain set in when the party reached Carnarvon to camp for the night.

“During the night an unexpected storm flattened many of the tents, soaked “Because of the vast areas of Precambrian everyone’s gear and closed several main roads,” Dr Grey said. rocks in Western Australia, the Geological

“The next day was spent trying to dry out Survey has pioneered methods of using fossil and it was obvious that the bush tracks stromatolites to correlate rocks that are would be too boggy to allow access to Duck Creek, the first fossil locality on the otherwise difficult to date,” Dr Griffin said. itinerary.

“While the conditions were frustrating, the organisers were able to take some solace from the fact that these young researchers now know just how difficult it can be to collect data in remote areas of Western Australia.

“All three vehicles used in the expedition were bogged at some point in the trip and the students were introduced to the joys of snatch-strapping and digging out vehicles.”

Despite the weather, the expedition participants were able to examine a layer of spherules in the Hamersley Group, which provided evidence of a huge impact event. And after some heavy work with picks and shovels to repair previous cyclone damage, they were also able to reach the Trendall locality to see some Before setting off on 6 June, expedition In spite of the difficulties involved in the of the oldest fossils in the world. participants were given a tour of the trip, Dr Grey said participants remained GSWA Core Library at Carlisle, which in good spirits throughout and learned The mapping of a new stromatolite archives drill-core samples and other a lot about the geology of Western locality 60 km south of Marble Bar materials acquired during mineral and Australia. She said many of the students that has the potential to be a specialist petroleum exploration in WA. expressed their determination to return geotourism and educational site had to to see some of the localities they could be abandoned. GSWA Director Tim Griffin said the expedition showed there was great not explore this time. “But this at least allowed the party to interest in Western Australia’s “Some may even return to work over examine Fortescue Group geological Precambrian fossils. structures along the sealed Rippon Hills here,” Dr Grey said. Road,” Dr Grey said. “Because of the vast areas of Precambrian rocks in Western Australia, “It seems that several who visited the “And another rethink of our plans the Geological Survey has pioneered Ironclad Hotel in Marble Bar were offered resulted in a morning spent at Marble methods of using fossil stromatolites jobs on the spot because of the current Bar Pool engaged in lively discussion to correlate rocks that are otherwise shortage of geologists in the mining about the origin of life.” difficult to date,” Dr Griffin said. industry.”

11 Prospect LEADING LIGHTS WA INNOVATION & INVESTMENT CONFERENCE

DoIR 081714_Prospect

This October, Western Australia will host some of the world’s leading innovators and entrepreneurs as they come together to showcase the State’s growing emerging industries. The Leading Lights Innovation and Investment Conference will be held from 16 – 17 October and offers a unique opportunity to visit Perth and discuss business opportunities. This is your chance to take advantage of WA’s thriving economy and brilliant science minds.

Guest speakers include: Where: Burswood Entertainment Complex Steve Wozniak, Co-founder of Apple Computer When: Thursday 16 October to Friday 17 October 2008 Steven Goh, Co-founder, mig33, Conference cost: $495 until 8 October San Francisco (established in Perth) Peter Quinn, Premier’s Fellow and Professor of Register now to avoid disappointment: Astronomy, UWA www.doir.wa.gov.au/leadinglightsconference Pete Bonee, Partner, Innosight Ventures, Singapore The Leading Lights Conference is part of the Western Australian Government’s Brilliant West Week, being held from The program features a mix of: 12-18 October. • presentations • panel discussions For researchers, entrepreneurs and businesses, Brilliant West • case studies Week will help develop the knowledge, skills and networks to take new products and services from idea to market. • pitch sessions • business matching activities Who should attend: • Entrepreneurs who need the right information to help secure capital • Investors who want access to investment ready business ventures LEADING LIGHTS • People with an interest in innovation WA INNOVATION & INVESTMENT CONFERENCE

www.doir.wa.gov.au/leadinglightsconference New DoIR Director General Anne Nolan says the growth of its resources industry provides Western Australia an opportunity to deliver lasting economic, social and cultural benefits.

New DG focuses on sustainable and continued growth

In 2007 Western Australia accounted business confidence levels,” “Western Australia has a strong for more than 36 per cent of Ms Nolan said. and diverse economy, so it will be a very exciting challenge to Australia’s total merchandise “With this growth comes challenges exports, shipping out a total ensure this growth continues in a and it is more important than ever sustainable manner,” she said. of A$61.3 billion in goods. that we manage development in a sustainable manner. “One of the important factors in that The State is the powerhouse of equation is cooperation between Australia’s economy and there is no doubt “The Government must play a role in government and industry. that its current economic prosperity ensuring that the proposed resource is the envy of the world’s developed expansions and new developments “Government and industry must nations. The rapid industrialisation are sustainable and that they will work together because of the of China has created an enormous return a dividend to all Western interactive nature of our economy. Australians to underpin our future. opportunity for the biggest resources “The community wants economic expansion in Australia’s history. “This is also important for our growth but they want it to occur in an trading partners who want security This period of historic and momentous environmentally sensitive way that is of supply for many years to come also socially inclusive and responsible. demand for Western Australia’s as they continue to expand also.” commodities offers many opportunities “I am looking forward to ensuring and challenges for the State. And the new Ms Nolan brings a wealth of experience DoIR delivers its services to best meet Director General of the Department of in leading and developing public the needs of the Western Australian Industry and Resources (DoIR) is ready sector agencies, most recently community, through balancing economic, to tackle these challenges with gusto. as Deputy Director General at the Western Australian Department social and environmental considerations.” Anne Nolan took over the reigns at of Premier and Cabinet. There are several key issues on top of DoIR in July and says that as a State, Ms Nolan’s list of priorities for her time Western Australia has an opportunity Her other government posts include Chief Executive at the Independent at DoIR. They include energy security, to ensure that the current and Market Operator, and the Coordinator development in the Pilbara and the prospective resources growth delivers of Energy at the Office of Energy. She Kimberley, the streamlining of approvals lasting economic, social and cultural has also held a number of senior processes and industry diversification. benefits to all Western Australians. positions within the Department of Treasury and Finance including the “DoIR is responsible for issues “Western Australia is experiencing role of Executive Director (Economic). that are critical to the ongoing unprecedented levels of growth – development and prosperity of it provides one-third of Australia’s Ms Nolan said she was looking forward Western Australia,” she said. total exports, has Australia’s lowest to leading a department that had unemployment rate, among its fastest been significantly involved in Western Ms Nolan has been appointed growth in retail sales and the highest Australia’s unprecedented growth. under a five-year term.

13 Prospect Indigenous employment goals in sight

Rio Tinto Iron Ore (RTIO) is well allowed traditional owners to They will now move into employment, on its way to reaching its target benefit from the RTIO expansion. some with RTIO and some elsewhere. of employing 100 indigenous She said pleasing progress had “The priority area for the company been made in just a few months. workers within Western Australia in terms of recruitment is those in the 12 months since signing a “We are working closely with RTIO’s traditional groups with which Memorandum of Understanding team and have formed a working RTIO have land use agreements, with the State Government. group to map the recruitment followed by other Pilbara-based processes and establish a pre- indigenous people, then indigenous To date, 30 indigenous workers have people from elsewhere in the employment and job-based training been employed by RTIO from Karratha, State,” Ms Jackson said. Roebourne and Tom Price/Paraburdoo. program,” Ms Jackson said. “There are eight tasks attached “This group oversees the award- The Memorandum of Understanding to the MoU document, and along (MoU) for the delivery of economic winning pre-employment Workstart with jobs and training, it is looking development for indigenous Western program run by the Ashburton at establishing an environmental Australians was signed by the then Aboriginal Corporation. rehabilitation company. State Development Minister Eric Ripper, the then Director General “The 16-week Workstart program is “They want that to have indigenous of the Department of Industry and intensive. It’s self-paced and picks engagement, involvement and Resources (DoIR) Dr Jim Limerick, up fitness for work, leadership, preferably ownership of the and RTIO Chief Executive Sam Walsh. numeracy, and drivers’ licences – the company and the operations – that’s basics necessary to get indigenous employment and enterprise.” The agreement has seen RTIO people to the employer’s gate. and DoIR work together on a Ms Jackson said the DoIR and RTIO range of training, pre-employment “The Workstart training is just the team were finalising where they and employment programs, beginning. That guarantees the would be targeting recruitment, and business opportunities, to trainees a job within the company, how many people they would take maximise the participation of but once there they benefit from from each group or location, and indigenous people in the expansion on-site trainers, mentors and where they would be placed on of RTIO’s Western Australian other support structures to help RTIO sites across the Pilbara. mining and related operations. them through the process.” RTIO has appointed three part- The aim is for RTIO to employ up to time work ambassadors to help The latest 21 trainees were recognised 300 indigenous workers in a range of members of traditional owner and acknowledged at a graduation occupations over the next two years. groups gain employment. ceremony held in Roebourne in July, DoIR Aboriginal Economic where former WA Indigenous Affairs “The primary role of the ambassadors Development (AED) Director, Minister Michelle Roberts presented is to provide a link between Victoria Jackson said the MoU graduates with certificates. RTIO and its traditional owners, 14 Prospect Trainees from the Workstart program attended a graduation ceremony in Roebourne on 18 July, where former Indigenous Affairs Minister Michelle Roberts presented certificates with RTIO Organisation Resources Vice President, Joanne Farrell.

promoting employment and economic “It has been truly collaborative AED has also recently begun work opportunities with the company and and we are very appreciative of the with mining company MetalsEx Indigenous employment its contractors,” Ms Jackson said. efforts of the staff from AED. and traditional owner groups in the Ngaanyatjarra lands east of Warburton. “They will promote the benefits of work “It is a great model for future projects”. to Aboriginal people at the individual, “We’ve been asked to put together Mr Hart said it was not an issue for family and group level; promote an employment enterprise goals in sight RTIO that some graduates were employment at RTIO’s operations; strategy from the outset for the working with other companies. mentor and support Aboriginal people Wingellina Nickel Project, and so we’re working with the traditional who make a commitment to take “What’s important is that this project owners and the mining company up work or programs that prepare is increasing the level of indigenous side by side,” Ms Jackson said. them for work; help them through employment – it doesn’t matter the assessment and training process; where they are employed,” he said. “We don’t have a formal Memorandum and mentor them on the job.” of Understanding, but are doing similar “We’re delighted with the work work to bring to fruition the best The three ambassadors have ambassadors, who are making sure opportunity for them to engage in the that people in the community help been appointed to the Kurama mainstream economy. It’s wonderful us to achieve good job outcomes.” Marthdudunera, Gobawarrah to see the success of the MoU with Minduarra Yinhawanga and Nyiyiparli Ms Jackson said that while RTIO RTIO spreading further afield.” Groups. RTIO will appoint further benefited from the ability to train ambassadors for other traditional and recruit local indigenous owner groups later in the year. people, the major benefit was to those who gained employment. RTIO General Manager of “It is exciting Communities Bill Hart said the DoIR has established another company was extremely excited program called Work Coach in because about what was happening. partnership with the Bloodwood Tree Association, an indigenous “We think it is a wonderful project, employment agency in Port Hedland. we are with collaboration between ourselves and the State and our Ms Jackson said this initiative was working with partners, including the Ashburton also showing encouraging signs. Aboriginal Corporation,” he said. long-term “It’s designed to pick up people who “It is exciting because we are have shown motivation,” she said. unemployed working with long-term unemployed “They have the skills and willingness and we’ve got this opportunity to engage in the labour market, but and we’ve to assist them into work. might be lacking in fitness or readiness for work, and need motivation and “What has been particularly fascinating got this support to get to a level of fitness that and exciting about this work is that will allow them to pass medicals. through this collaboration, we are opportunity improving the way Workstart will work. “The Work Coach program has the It’s continuous improvement in the way flexibility to provide a supportive to assist them it is operating, because each time we environment to assist trainees and are learning new things and adapting provide encouragement in overcoming into work.” so that we can get the best results. personal barriers to being work-ready.” 15 Prospect Mineral sands mined at Eneabba provide the basis of Iluka Resources’ Mid West operations.

Iluka aims to maintain Mid West presence with A$60m expansion

Iluka Resources could secure its “The company is already the largest Iluka spokesperson Robert presence in Western Australia’s employer in the Geraldton community and Porter said the Mid West Mid West region for years to will be able to offer longer-term security generated about 75 per cent of come through the expansion of its to its 240 full-time workers at Narngulu Iluka’s overall production. as well as new contract employment Narngulu facility to process mineral “While the Mid West remains a to many more engineers and transport sands from South Australia. key part of the Iluka portfolio, workers,” Mr Carpenter said. there has been recognition The Western Australian for some years that the age Government approved a variation “The proposed A$60 million of the ore bodies being mined in July to the State Agreement expansion of the processing covering Iluka’s Mid West facilities to accommodate this meant that the mineralogy operations, allowing it to use the plan will use predominantly local characteristics were declining,” Narngulu plant for processing contractors and suppliers.” Dr Porter said. ore mined from sources other He said there was excess than its Eneabba mining leases. Iluka has also agreed to the processing capacity available at removal of the unimproved Narngulu and it made sense to This variation will allow the value rating clause in the State consider how this could be best company to import and process Agreement, which will allow local utilised. 600,000 tonnes of heavy mineral government authorities to rate concentrate (HMC) from its the company’s operations on “The company’s intention to bring Jacinth-Ambrosia deposit in gross rental value as they would heavy mineral concentrate from South Australia each year. similar operations. the Jacinth-Ambrosia project The depletion of ore bodies in South Australia provides the The Jacinth-Ambrosia deposit from the Eneabba leases has logical means to utilise existing contains an estimated 6 threatened Iluka’s contribution spare processing capacity in million tonnes of HMC. It will to the Mid West region, where it Western Australia and in doing supplement HMC sourced from employs 385 permanent and 300 so, extend the economic life contract staff and contributes the Eneabba mining lease. of the Mid West processing more than A$120 million facilities,” he said. Shipments of HMC should begin annually. in early 2010 between the ports The opportunity to process HMC Speaking at the announcement of Ceduna in South Australia and from South Australia is expected of the variation, the then Geraldton in WA. The Narngulu to extend the life of the Narngulu Western Australian Premier Alan facility is expected to produce facilities by at least 10 years, Carpenter said it would allow approximately 300,000 tonnes of which is the current estimated Iluka’s considerable presence in zircon from the South Australian economic life of the Jacinth- the region to be maintained. mine each year. Ambrosia ore bodies. 16 Prospect Iluka also has an active “Iluka has also been a good West to maintain some diversity exploration program within its corporate citizen in terms of within the mining sector at a time Eneabba licence area and within its contribution to community when there was growing interest events, sporting events and so the past 12 months has stepped in iron ore development. on,” he said. up efforts to identify new deposits “While there has been a lot near existing facilities. “From our point of view, allowing of interest in the region from Iluka to bring in this concentrate the junior iron ore miners, Mid West Development from South Australia will allow the interest from the major that position to continue well into Commission Chief Executive companies has not yet the future.” Steve Douglas said Iluka had materialised and it’s important been a valued contributor to Mr Douglas said the continuation that we maintain that diversity the Geraldton and Mid West of Iluka’s mineral processing within sectors, as well as across community for a generation. operation would allow the Mid sectors,” he said.

Iluka Resources will step up exports through the Port of Geraldton once it starts processing ore from South Australia.

Iluka’s Mid West operations: • Iluka has been present in the Mid West for 30 years • The region accounts for 75 per cent of company production • The company employs more than 385 permanent and 300 contract staff in the region • The Narngulu processing facility alone employs 240 full-time workers • Iluka contributes more than $A120 million per year to the regional economy

17 Prospect Environmental compliance on the up “It is encouraging to note that compliance levels have improved in the Goldfields and the Mid West ...” “It is encouraging to note that compliance levels have improved in the Goldfields and the Mid West ...

18 Prospect Environmental compliance on the up

The percentage of mining companies not complying with environmental regulations governing exploration has dropped significantly.

There has been a big jump in “We designed a package of measures DoIR arranged a series of workshops the Western Australian mining to ensure that industry was made to improve general understanding of industry’s compliance with very aware that the Government exploration regulatory requirements. the environmental regulations would not tolerate non-compliance, and it is very rewarding to see that “We conducted a series of exploration governing exploration tenements these are having an effect.” compliance seminars and workshops, following the 2007 revelation in Perth, Bunbury, Geraldton and that 82 per cent of sites failed The 2007 situation was so serious that Kalgoorlie.” Mr Cobby said. “It is encouraging to note that the then Resources Minister Francis to meet requirements. Logan warned he was prepared to “We had a good response, including Field inspectors from the Department remove tenements from offending more than 100 exploration staff in of Industry and Resources (DoIR) companies, and hefty fines were Kalgoorlie. I was very happy with attendance, the response of attendees have reported the figure has now imposed for significant breaches. at the workshops and also with what been reduced to about 30 per cent. compliance levels have improvedGolden West Resourcesin was fined we are now finding in the field.” Inspections of 56 exploration sites by a total of A$71,500 for a number of Mr Cobby said inspectors were making DoIR last year revealed that 46 had offences at mining tenements at its more regular field inspections. environmental and regulatory breaches, Wiluna West iron ore project, including some of which were in environmentally unauthorised drilling and clearing and “There were 251 inspections of sensitive areas of the State. the failure to complete rehabilitation. mining operations during 2007- the Goldfields and the Mid West ... 08 compared with 170 inspections And Hancock Prospecting was fined Breaches included drilling or the previous year,” he said. construction of exploration camps A$20,000 for the unauthorised without an approved Program of Works; construction of an exploration camp at “It is encouraging to note that failure to permanently and securely plug Roy Hill, 120 km north of Newman. compliance levels have improved in the Goldfields and the Mid West drill holes and pick up sample bags; Ten of the non-compliant sites were but continued communication excessive clearing for drill pads and issued with directions to modify work and engagement with industry access tracks; and failure to comply practices; the operators of 26 sites were and consultants is needed to with rehabilitation requirements. ordered to provide written explanations; drive the message home. and seven were issued with verbal “The breaches were widespread, instructions to undertake work. “The Government has clearly indicated and the incidence had increased that it will not tolerate non-compliance markedly over previous inspections,” With the maximum fine for breach with legally binding conditions.” DoIR Senior Environment of exploration licence or lease Advisor Graham Cobby said. conditions being A$50,000, DoIR DoIR’s 2008-09 inspection program reviewed the level and range of is focused on exploration and mining “They appeared to result from the fines in terms of their disincentive activities that are considered to rapid rise in the number of exploration effectiveness. Amendments are be higher risk, particularly in the companies with exploration applications proposed for a maximum of A$150,000 Goldfields and Pilbara regions. having risen to 2500 a year, compared per tenement for corporations. with 500 per annum four years ago. Risk factors considered include Following the review, the Government location and environmental sensitivity, “It was also clear that small-to- also revised the Scale of Fines, which nature and extent of operation, medium sized companies were not dictates the level of fines different area of disturbance and potential well enough aware of basic legislative breaches attract, based on factors for rehabilitation, company history requirements and there was a lack such as the size and environmental of performance and a range of of onsite management control. impact of ground disturbance. technical considerations. 19 Prospect Golden Geckos celebrate another

year of sustainable Rio Tinto Iron Ore development The 2008

The broad range of projects entered in the 2008 Golden Gecko Awards covered everything from sustainable accommodation and waste recovery initiatives, to technologies to reduce pollution and environmental footprints. Golden

This year’s winners of the awards, The assessment panel for the awards BHP Billiton which are organised by the Department is made up of representatives of DoIR; of Industry and Resources (DoIR), the Departments of Environment and Project: Newman EcoVillage were announced at a ceremony at Conservation, Agriculture and Food, and Location: Pilbara the Perth Convention and Exhibition Water; the Environmental Protection Centre on September 10. Authority; and the Conservation BHP Billiton has developed sustainable Council of Western Australia. self-contained accommodation for fly- HIsmelt Operations, Minara Resources in, fly-out workers that is energy and and Kings Park and Botanic Gardens Findings based on written submissions water-efficient and aimed at townsite with Rocla Quarry Products won and site visits are presented to a integration, thereby improving workforce Golden Gecko Awards while Rio Tinto selection committee, which decides participation in the community. Iron Ore won a Certificate of Merit. the projects deserving of a bronze Golden Gecko Award sculpture and Now in their 17th year, the Golden Geckos any Certificate of Merit recipients. Chevron Australia recognise outstanding contributions Project: Enhanced management of to environmental sustainability in the The criteria against which the vegetation clearing Western Australian resources industry. entries are judged are: Location: Barrow Island

DoIR Environment Director Kim Anderson • Commitment to Chevron has developed a new geographic said the awards provided an opportunity Environmental Excellence information system (GIS) software to to showcase outstanding projects and improve the planning and implementation communicate their progress to the public. • Demonstrated Excellent of native vegetation clearing, to minimise “By offering recognition to companies Environmental Outcomes impacts and avoid priority vegetation that responsibly develop Western areas. This tool also assists in auditing Australia’s valuable resources, the • Community Engagement native vegetation clearing and ongoing Golden Geckos help to encourage the reporting of cumulative impacts. wider industry adoption of such practices • What Makes it Special? in the future,” Ms Anderson said. HIsmelt Operations To find out more information about She said the nine submissions for the the Golden Geckos, including the Project: HIsmelt technology 2008 awards were of a very high quality. 2008 winners, visit http://www. Location: Kwinana doir.wa.gov.au/goldengecko/ “What is most encouraging is that HIsmelt Operations has developed a they cover a broad range of resources Full details of the winners will new steel-making process that creates development in both the mining also be included in the next less pollution and imposes a smaller and petroleum sectors, and employ edition of Prospect. environmental footprint than existing blast a variety of innovative methods to furnace technology. The company has achieve their important outcomes.” also undertaken numerous initiatives on a local level including the Kwinana Water Last year a Golden Gecko was awarded Reclamation Plant, identifying product to Alcoa World Alumina Australia for synergies with neighbouring industries and the rehabilitation of 975 hectares of implementing waste recycling programs. land at the Jarrahdale Bauxite mine.

20 Prospect BHP Billiton Chevron Australia Inpex Browse Ltd

Golden Geckos nominees

Minara Resources Ltd Inpex Browse Ltd Minara Resources Ltd Project: Minimising environmental Project: Framework for minesite closure impact of onshore drilling Location: Goldfields Location: Maret Islands Minara Resources Ltd has developed key Inpex Browse has undertaken its performance indicators for rehabilitation onshore geotechnical drilling program success, to improve rehabilitation planning, with minimal environmental impact on design and adaptive management, Maret Islands through the helicopter and increase certainty and clarity in transport of equipment; restricting assessing rehabilitation performance. all onshore transportation to walking, Kings Park and Botanic Gardens including for pipe laying; developing with Rocla Quarry Products an offshore desalination plant; and Rio Tinto Iron Ore locating all accommodation offshore. Project: Lang Hancock Railway Location: Pilbara Kings Park and Botanic Rio Tinto Iron Ore has avoided and minimised environmental impacts Gardens with Rocla on key Mulga woodland communities Quarry Products and Aboriginal heritage sites through undertaking extensive consultation Project: Banksia woodland restoration to inform the design and route of the Location: Lexia Lang Hancock Railway. Research has also been undertaken into the Rocla Quarry Products engaged Kings design and rehabilitation of borrow Park and Botanic Gardens 13 years ago, to pits to improve rehabilitation success. Universal Sodexho undertake research into restoring banksia woodland to rehabilitate its sand quarries. This resulted in significant improvements Universal Sodexho in the understanding of the unique ecosystem and was applied to achieve Project: Waste recovery program a successful return of species diversity. Location: Statewide Remote site services company Universal Lennard Shelf Pty Ltd Sodexho has overcome numerous implementation barriers to remove all Project: Cadjebut tailings storage facility recyclable materials from mine site rehabilitation accommodations. The amount and volume Location: Kimberley of waste deposited in local landfill has been significantly reduced and all money raised Lennard Shelf Pty Ltd Lennard Shelf Pty Ltd has undertaken an is donated to Princess Margaret Hospital. innovative approach to tailings storage Waste canola oil is also converted into facility design, for successful rehabilitation biodiesel to fuel on-site vehicles. where climatic conditions and soil types could not be addressed by standard design.

21 Prospect FMG on expansion track in Pilbara FORTESCUE Metals Group (FMG) FMG has also entered into a joint venture political, business and community continues to pass milestones in with Chinese firm Baosteel to develop leaders from across Australia. the Pilbara as it aims to cement the Glacier Valley tenement. Speaking at the ceremony, the then its position as the new force in the Reflecting the importance of the Western Australian Premier Alan Western Australian iron ore sector. Chinese market, it has established Carpenter said the project had gone an advisory board to provide advice from conception to operation in record The fledgling company shipped the to senior management about the time and attributed this to the drive and first ore from its Cloudbreak mine company’s strategy and operations determination of FMG chief executive to China in May this year, in keeping in the country. Mr Rowley said it was Andrew Forrest and his team. with its long-stated schedule. important for FMG to have such high “For FMG’s mine and the associated By 18 July it had achieved “project level representation in China, which purchased the bulk of its iron ore. railway and port facilities to go completion”, a condition of its financing from the first drill holes at Cloud arrangements whereby it mined, “Fortescue has agreements Break to operation within three- railed and shipped two million tonnes with all top 20 steel producers and-a-half years is a momentous of ore within a four-week period. in China for production up to achievement,” Mr Carpenter said. And by the end of July, 25 shipments 100 Mt/a,” Mr Rowley said. carrying more than four million tonnes He also praised FMG’s commitment of ore had left the company’s Herb “There is huge demand worldwide to the Pilbara community. Elliot port facility, bound for China. demand for iron ore, and as a result we are in constant discussions with existing The company has pledged to house FMG Executive Director Graeme Rowley customers about expanding worldwide all of its 250 permanent port and rail said the company’s operations had supply as well as new customers workers in Port Hedland. The first of 250 four significant phases - construction; seeking iron ore from Fortescue.” homes were scheduled to be completed commissioning of equipment; ramp- in mid-August and a home ownership up to full operation; and expansion. The 18 July date for project program for FMG employees was to completion in the Pilbara was exactly be implemented at the same time. It has completed the first two five years from when FMG came of these and is busily working into existence at an extraordinary On top of this, FMG has a number of programs to improve the lives on the remaining two. general meeting in Perth in 2003. of indigenous Australians in the “Our initial plans are to achieve a Mr Rowley said there had been north of Western Australia. production rate of 55 million tonnes per significant challenges since annum (Mt/a), before expanding to in then in getting the company’s FMG has targeted a production rate of excess of 100Mt/a,” Mr Rowley said. project off the ground. 55 million tonnes of iron ore per annum, before expanding to more than 100 Mt/a. “The board is currently considering “There was obviously considerable a range of finance options scepticism about Fortescue’s lofty that is expected to establish a ambitions,” Mr Rowley said. strongly funded expansion.” “In addition the challenges FMG will announce further details of presented by our competitors only these expansion plans in the near future. spurred us to work smarter and harder to achieve our goals.” It is currently investigating resources within its tenements, with exploration He said innovations, such as the activity focused on the western use of surface miners, presented region around the Solomon Group. significant challenges to achieve maximum efficiencies. The company’s tenement area increased by 17,000 km² during “Some worked, some didn’t, but the the three months to June 2008 and end result has been high production currently stands at 57,400 km². rates matched by low cost of production, which will sustain Fortescue for decades In a project named Heng Shan, to come.” Fortescue has undertaken extensive planning to increase the production FMG’s first shipment of ore to base of its Chichester Range deposits - China was marked by a ceremony Cloudbreak and Christmas Creek. at Port Hedland attended by

22 Prospect The FMG timeline 2003 FMG formed at extraordinary general meeting in Perth and acquires tenements at Christmas Creek and Cloudbreak localities

2004 Signs first Chinese iron ore sales agreements and Infrastructure State Agreement

2005 Discovers significant iron ore mineralisation within Cloudbreak area and signs Mining State Agreement

2006 Commences earthworks at port site and construction of railway

2007 Opens China office, signs further supply deals and begins commercial mining at Cloudbreak

2008 Completes construction of Cloudbreak to Port Hedland railway and ships first ore to China

23 Prospect Commissioned Projects Committed Projects

Iron Ore order to extend the life to about 2024, the company Mid West Region - Extension Hill Hematite Mine has committed to an underground mine expansion. MT GIBSON IRON LTD Pilbara - Hope Downs - Iron Ore Mine Commencement of underground operations is Mount Gibson Iron has environmental approval for HAMERSLEY WA PTY LTD scheduled for Q4 of 2008. a 2 Mt/a hematite mining operation at Extension The initial mining project includes the development Expenditure: $1.2b. Hill, 330 km southeast of Geraldton. The ore will be of mining in the East Pilbara and the construction of Employment: Construction: 250; Operation: 500 trucked to a railhead near Perenjori then railed to the a rail spur line to connect to the existing Pilbara Rail port of Geraldton for export. The Mount Gibson board network. Production will be up to 30 Mt/a after 5 years. Electricity has approved commencement of construction of the Full operation is expected to commence in Q4 2008. project. Subject to secondary Government approvals, Hope Downs Iron Ore assigned a 50 per cent interest in Collie - Collie - Bluewaters I and II, Coal-fired Mount Gibson expects to start shipments in Q2 2009. the project to Hamersley WA Pty Ltd. Power Stations Expenditure: $73m. Employment: Operation: 280 GRIFFIN ENERGY PTY LTD Employment: Construction: 150; Operation: 100 Pilbara - Iron Ore Mine Rail and Port Development Griffin Energy is constructing the first of two 208 Mid West Region - Koolanooka/Blue Hills Hematite MW coal-fired power stations at the proposed FORTESCUE METALS GROUP LTD Iron Ore Mine Coolangatta industrial estate, 10 km northeast of MIDWEST CORPORATION LIMITED FMG operates a 45 Mt/a iron ore mine at Cloud Break Collie. Commissioning of the Bluewaters 1 coal-fired in the Chichester Ranges of the eastern Pilbara. The base load power station is expected by late 2008. Midwest Corporation commenced transporting iron mine is serviced by a multi-user railway and new port Griffin expects the second of the two power stations ore fines from stockpiles at Koolanooka, about 160 km facilities at Port Hedland. First exports of iron ore to southeast of Geraldton, in January 2006, with the first (Bluewaters II) to be commissioned in late 2009. China commenced in May 2008. exports shipped in February 2006. Midwest proposes to Expenditure: $400m. Expenditure: $3.2b. re-open the Koolanooka and Blue Hills hematite iron Employment: Construction: 2500; Operation: 870 Employment: Construction: 600; Operation: 50 ore mines at a rate of 1-2 Mt/a, with timing dependent on the timing of government approvals. The re-opening Bauxite Gold of the mines is being environmentally assessed at a Public Environmental Review level. Boddington - Gold Mine (Wandoo Expansion) Worsley - Alumina Refinery Expansion to 4.7Mt/a Expenditure: $26m. BGM MANAGEMENT COMPANY PTY LTD WORSLEY ALUMINA PTY LTD Employment: Construction: 40; Operation: 60 BHP Billiton in May gave the go-ahead for the $2.5 BGM Management Company Pty Ltd, on behalf of billion Efficiency and Growth Expansion Project at its Newmont and AngloGold Ashanti, is developing Iron Ore Processing Worsley Alumina Refinery. The project will lift capacity the Wandoo project, based on mining the extensive of the refinery from 3.5 Mt/a to 4.7 Mt/a through bedrock resource that underlies the mined-out oxide Kwinana - HIsmelt Commercial Iron Making Plant expanded mining operations, additional refining resource. The mine has been in the construction phase HISMELT CORPORATION PTY LTD capacity and upgraded port facilities. The construction since 2006. Production will be about 800,000 oz/a of HIsmelt Corporation, in a joint venture with Nucor phase will start immediately and first production is gold and about 30,000 t/a copper in concentrates over a (25%), Mitsubishi (10%) and Shougang (5%), has expected in the first half of 2011. 17-year mine life. Initial production is expected by late developed a commercial-scale HIsmelt process plant Expenditure: $2.5b. 2008 or early 2009. The Wandoo project will result in at Kwinana, near Perth. The first stage of the plant is Employment: Construction: 1500; Operation: 200 significant growth in and around the rural community designed to produce 800,000 t/a of pig iron from iron of Boddington, 120 km southeast of Perth. ore fines, coal and fluxes. First hot metal production Char Expenditure: $2b. commenced in mid-2005, with commissioning continuing towards full production capacity over three Employment: Construction: 1500; Operation: 650 Collie - Premier Mine - Char Plant (Coal) years. WESFARMERS PREMIER COAL LIMITED Heavy Mineral Sands Expenditure: $800m. At its Premier Coal Mine near Collie, Wesfarmers Employment: Construction: 320; Operation: 65 Energy has commissioned a demonstration scale Narngulu - Processing Facility Expansion char plant, with a target production capacity at full ILUKA RESOURCES LIMITED Oil & Gas Developments operation of 50,000 t/a. The plant is providing sufficient Iluka recently announced a proposed $60 million Carnarvon Offshore Basin – Angel – Gas and volume to allow potential customers to fully assess the upgrade of its Narngulu processing facility to treat product. Char has applications in steelmaking, ferro Condensate Field third-party ore from South Australia, to supplement alloy production, mineral sands processing, smelting WOODSIDE ENERGY a diminishing supply from its Eneabba mining and some chemical plant processes. The Angel gas and condensate field, operated by operations. Iluka will treat up to 600,000 t/a of heavy Woodside as part of the North West Shelf Venture Expenditure: $8m. mineral concentrate from its Jacinth-Ambrosia deposit (NWSV), includes the NWSV’s third fixed production Employment: Operation: 10 in SA at Narngulu starting in early 2010. Up to 350,000 platform, which will be remotely operated; three t/a of zircon will be produced at the plant. Coal subsea production wells; and a 50 km subsea pipeline, Expenditure: $60m. which will link the new platform to the existing North Collie - Collie Coal Mine (Ewington I) Rankin production facility. Angel is expected to start up THE GRIFFIN COAL MINING COMPANY PTY LIMITED Iron Ore in Q4 2008. The platform will be capable of processing 800 million standard cubic feet of gas a day and 50,000 Griffin Coal plans to develop its Ewington I coal Tom Price - Brockman 4 Iron Ore Mine bbl/d of condensate. deposit, approximately 2 km east of Collie, which HAMERSLEY IRON PTY LIMITED has estimated coal resources of 408 Mt. The mine Expenditure: $1.6b. Hamersley Iron is developing the Brockman 4 iron will produce approximately 3.4 Mt/a of coal for Carnarvon Offshore Basin - Pluto LNG private sector customers, including Griffin Energy’s ore deposit. Construction work has commenced and WOODSIDE ENERGY nearby Bluewaters 1 power station, presently under commissioning is expected in 2010. Full capacity of 22 construction, and its proposed Bluewaters 2 power Mt/a is expected to be reached in 2012. Woodside approved the Pluto LNG project in Q3 2007. station. Mine start-up is scheduled for 2008-09. The Expenditure: $1.5b. Construction has commenced on Sites A and B on the Ewington I coal mine will be an extension of the Burrup Industrial Estate for export of LNG in Q4 2010. Cape Lambert - Cape Lambert Port Expansion Ewington II mine. Expenditure: $11.2b. ROBE RIVER MINING CO PTY LTD Expenditure: $20m. Employment: Construction: 3000; Operation: 200 Robe River Mining is planning to expand the capacity North West Shelf - Project Expansion - Collie - Collie Coal Mine (Ewington II) - of its port facilities at Cape Lambert, east of Karratha. 5th LNG Train Char Plant (Coal) The expansion will lift the iron ore export capacity THE GRIFFIN COAL MINING COMPANY PTY LIMITED of the facilities to 85 Mt/a. It is anticipated that the WOODSIDE ENERGY The char plant is designed to drive off most of the expansion will be completed Q4 2008. Commissioning is due in Q4 2008 and first LNG export water and volatile compounds from Ewington II coal. Expenditure: $1.1b. cargoes are also planned for Q4 2008.The fifth train The plant, located about 4.5 km east of Collie, will will boost the North West Shelf project’s total LNG Employment: Construction: 450; Operation: 70 convert up to 800,000 t/a of coal to 400,000 t/a of production capacity to 16.3 Mt/a. char from two process units. The plant will produce Dampier - Dampier Port Expansion Expenditure: $2.4b. high-value char suitable for steelmaking as well as HAMERSLEY IRON PTY LIMITED Employment: Construction: 1500; Operation: 20 generation of 24 MW of power. Hamersley Iron is well advanced in its construction Carnarvon Offshore Basin - Pyrenees – Oil Fields Diamonds work to expand the capacity of its port facilities at BHP BILLITON PETROLEUM (AUSTRALIA) PTY LIMITED Dampier Port from 120 Mt/a to 145 Mt/a. This work In July 2007, BHPB Petroleum announced approval included installation of a new car dumper, screen Kimberley - Argyle - Argyle Diamond Mine of the Pyrenees oil development, located 45 km house and related facilities. Final approvals to operate ARGYLE DIAMOND MINES PTY LIMITED north of Exmouth. The development comprises the the new facilities at 145 Mt/a are expected in Q3 2008. Development of the Argyle Diamond Mine commenced Crosby, Ravensworth and Stickle oil fields, which in 1982 and mining commenced in the main ore Expenditure: $920m. have estimated recoverable oil reserves in the body (AK1) in 1985. The mine is operational and in Employment: Construction: 800; Operation: 200 range of 80-120 million barrels. The project involves 24 This section is intended as an overview and does not constitute an exhaustive Prospect list of projects within the Western Australian resources industry. Projects Under Consideration

the development of 13 subsea wells connected Ammonia/Urea gas from the Dampier to Bunbury Natural Gas via flowlines to a floating production, storage and Pipeline, EGL has 10, 100 per cent-owned exploration offloading (FPSO) vessel, which will be capable of Burrup Peninsula - Ammonia Plant tenements containing coal deposits. A preliminary producing about 96,000 bbl/d of oil. First production is DYNO NOBEL ASIA PACIFIC LIMITED drilling program has returned positive results for expected during the first half of 2010 and the estimated Dyno Nobel purchased the interests of Plenty River a low-cost alternative energy source which would economic field life is 25 years. (Plentex) and Thiess in a large scale ammonia-urea minimise Greenhouse effects. EGL is awaiting DoIR Expenditure: $2b. project to be located on the Burrup Peninsula. The approval for an expanded drilling program to prove up the capacity for coal gasification of the resource. Carnarvon Offshore Basin - Van Gogh – Oil Field company is also conducting a feasibility study into developing a 230,000 t/a ammonium nitrate production Expenditure: $200m. APACHE ENERGY LIMITED facility, which could be located on the Burrup Employment: Construction: 100; Operation: 4 The Van Gogh oil development, located about 50 km Peninsula. The alternative of building a small scale Mid West Region - Central West Coal & Coolimba northwest of Exmouth, will utilise a FPSO vessel ammonia plant to supply the ammonium nitrate plant Power Projects with a processing capacity of 63,000 bbl/d of oil and is being investigated as part of the feasibility study. storage capacity of 620,000 barrels. It will be linked AVIVA CORPORATION LTD Expenditure: $900m. to two subsea drill centres with 10 production wells. Aviva Corporation Ltd is progressing the development Employment: Construction: 1000; Operation: 130 Drilling commenced in January 2008 and will continue of the Coolimba Power Project, a 2 x 200 MW base- until September 2008. Subject to obtaining all the Bauxite load coal-fired power station and associated coal necessary government approvals, the field installation mine located 20 km south of Eneabba. Coolimba will of Van Gogh is expected to start in late 2008 and be in Wagerup/Willowdale - Alumina Refinery Train 3 be the first power station in WA to deploy leading production by early-to-mid-2009. The expected life of Expansion edge emissions technology for carbon capture. Upon the development is 12-15 years. ALCOA WORLD ALUMINA - AUSTRALIA commissioning, the power station will constitute 8 Expenditure: $600m. per cent of the installed capacity in the SWIS and have Alcoa is investigating the feasibility of a third an operating life of 30 years. Subject to Government Carnarvon Offshore Basin – Vincent Development – production train expansion at its Wagerup Alumina approvals, construction is expected to commence Oil Field Refinery to increase capacity up to 4.7 Mt/a. On 14 in mid 2009 and will extend over three years for WOODSIDE ENERGY September 2006, the Minister for the Environment completion in 2011-12. Approval of the first phase of the Vincent oil approved the expansion proposal. A decision on the Expenditure: $1b. development was given in March 2006. The field is project go-ahead is dependent on market factors. located approximately 50 km northwest of Exmouth Expenditure: $1.5b. Employment: Construction: 600; Operation: 100 in a water depth of about 350 metres. Oil will be Employment: Construction: 1500; Operation: 260 Neerabup - Perth - Bioenergy produced through an eight well subsea development SpiritWest Bioenergy Pty Ltd and processed and stored in a FPSO vessel. First oil Coal is planned for Q4 2008, with initial production at about SpiritWest is developing a 46 MW base-load power 100,000 bbl/d. Collie - Bluewaters III and IV – Coal-fired Power station at Neerabup, 33 km north of Perth. The power station will use timber waste from pine plantations Expenditure: $1b. Stations nearby, and other wood residues. Environmental THE GRIFFIN COAL MINING COMPANY PTY LIMITED Rare Earths approval was received in 2006, and a final investment Griffin Energy Pty Limited is planning to expand the decision is expected by Q4 2008, with construction Bluewaters Power Station Project with two additional Mt Weld - Rare Earths Mine commencing shortly thereafter. Commercial operation 208 MW coal-fired power stations to be located on is scheduled for 2010-11. LYNAS CORPORATION LTD the Coolongatta Industrial Estate, 4.5km north-east The Mt Weld deposit, located about 35 km south of of Collie. Commissioning of the Bluewaters III base- Expenditure: $100m. Laverton, contains an estimated resource of 12.2 Mt load power station in expected by late 2012 and Employment: Construction: 250; Operation: 45 at 9.7% grade for 1.18 Mt rare earth oxides (REO). commissioning of Bluewaters IV by late 2014. The development involves an open pit mine and Expenditure: $800m. Gold concentration plant at Mt Weld. The concentrate will Employment: Construction: 600; Operation: 30 be containerised on site then trucked to Leonora and Kalgoorlie - Super Pit - Golden Pike Cutback railed to a container port for export. The first mining Copper KALGOORLIE CONSOLIDATED GOLD MINES KCGM campaign was completed in May 2008. The ore will be KCGM is planning to extend the life of its Fimiston open shipped to a $220 million processing plant in Malaysia, Pilbara - Panorama Copper-Zinc Mine cut mine by five years to 2017, with the Golden Pike which will have an initial production capacity of 10,500 CBH RESOURCES LTD Cutback. This will entail additional tailings storage t/a of REO in late 2009, and is then expected to be facilities and waste rock dumps. KCGM is also required The Panorama Project is located about 110 km expanded to 21,000 t/a in 2011. to develop a detailed closure plan prior to commencing southeast of Port Hedland. It involves the construction the expansion. The Minister for Environment endorsed Expenditure: $90m. and operation of an open-pit mine and associated the proposed project in June 2008 subject to additional Employment: Construction: 12; Operation: 40 infrastructure, with a mine life of about 8 years. conditions being imposed that will limit the project’s Approximately 75,000 t/a of copper concentrate and impact on the environment and surrounding residents. Titanium Dioxide Pigment 85,000 t/a of zinc concentrate are planned to be Employment: Operation: 1043 Kwinana - Titanium Dioxide Pigment Plant produced for shipment via Port Hedland. The project currently is undergoing environmental assessment Expansion through a Public Environmental Review. Heavy Mineral Sands TIWEST JOINT VENTURE Expenditure: $250m. Happy Valley - Heavy Mineral Sands Mine Tiwest, through its joint venture partners Tronox Employment: Construction: 176; Operation: 150 Incorporated and Exxaro Resources, has approved BEMAX CABLE SANDS (WA) PTY LTD an expansion at its Titanium Dioxide Pigment Plant Located adjacent to Bemax’s Gwindinup deposits, in Kwinana that will see a 36 per cent ramp-up in Electricity the project will involve the mining of mineral sands production from the plant’s current capacity of 110,000 Mid West Region - Centauri 1 Power Project from two deposits (Happy Valley North and South) t/a to around 150,000 t/a, in a bid to take advantage located on private land and in State forest. The ENEABBA GAS LIMITED of the strong demand for titanium oxide in the Asia- level of assessment for the project has been set at Pacific region. Construction is expected to start in late Eneabba Gas Limited (EGL) has received all necessary Environmental Review and Management Program. 2008, subject to Government approvals, with additional approvals for the start-up of its 168MW Centauri 1 gas- Environmental impact studies for the proposed mine capacity to come online in early 2010. fired power station project, located on company-owned development have been completed. Assessment of the land 8 km east of Dongara. Planning approvals have Expenditure: $100m. project by the EPA will commence in Q3 2008. Happy been received from the Shire of Irwin, Environmental Employment: Construction: 108; Operation: 12 Valley contains a reserve of around 6 Mt of ore at a Protection Authority and Department of Industry heavy mineral grade of 11.3 per cent. and Resources (DoIR). EGL is the only holder of an Expenditure: $35m. Vanadium Economic Regulation Authority generation licence Employment: Construction: 100; Operation: 30 Windimurra - Vanadium Pentoxide mine and in the Mid West. A Memorandum of Understanding processing plant has been signed with Verve Energy to swap gas for Jangardup South - Heavy Mineral Sands Mine operation flexibility. The project will be capable of WINDIMURRA VANADIUM LIMITED BEMAX - CABLE SANDS (WA) PTY LTD supplying power into the South West Inter-connected The project involves construction of a processing System (SWIS) but will be focused on supplying The Jangardup South minerals deposit is situated plant and planned commencement of operations in additional volumes of energy for the developing Mid 54 km south of the Nannup township and adjacent late 2008. Once operational, the mine will produce West iron ore industries. EGL has an agreement to to the D’Entrecasteaux National Park. Cable Sands approximately 5,600 t/a of contained vanadium. The acquire four GE LM 6000 gas-fired turbines, which will estimates that the deposit would provide 2 Mt of process plant will produce both ferro-vanadium (an allow construction to commence on-site immediately minerals. Feasibility and environmental studies are alloy of vanadium, aluminium and iron) and high purity and for the plant to be operational in approximately 14 well advanced. An environmental impact statement for vanadium pentoxide. months, as soon as take or pay contracts for Mid West the project is being prepared. Expenditure: $296m. iron ore customers are confirmed. Generation capacity Expenditure: $60m. Employment: Construction: 400; Operation: 120 can be easily increased to 365MW. Besides sourcing Employment: Construction: 100; Operation: 50

25 Prospect Projects Under Consideration

Keysbrook - Heavy Mineral Sands Mine Mid West Region - Extension Hill Magnetite Mine feasibility assessment of the development of the OLYMPIA RESOURCES LTD ASIA IRON Roy Hill iron ore deposit, possibly Australia’s largest Olympia proposes to develop a mineral sands mine Asia Iron has primary environmental approval to undeveloped Marra Mamba iron ore deposit. The located near the township of Keysbrook, approximately produce up to 5 Mt/a of magnetite concentrate, which deposit is located about 80 km north of Newman. In 70 km south of Perth. Olympia has identified proven will be transported by slurry pipeline to the port of 2007, the company invested $38 million on a major and probable reserves of 41 Mt of ore containing 1.2 Geraldton for export. The company is currently seeking drilling program to more closely define the iron secondary approvals. Mt of zircon, ilmenite and leucoxene. The concentrate ore resource. Further infill drilling is continuing. will be processed at Cable Sands’ plant at Bunbury Expenditure: $715m. The development program is to move to a bankable over the mine’s eight-year life. In late October 2007, Employment: Construction: 1000; Operation: 280 feasibility study by Q3 2008 for a decision on the project by late 2009. The project includes the development of the EPA recommended approval of the project subject Mid West Region - Jack Hills Hematite Mine Stage 2 mines, a new railway or third party use of an existing to Olympia meeting a number of conditions in the CROSSLANDS RESOURCES railway, and export port facilities at Port Hedland. development and operation of the mine. All required Murchison Metals commenced trucking 1.5 Mt/a Pilbara - West Pilbara Iron Ore Project information is now with the Appeals Convenor, which hematite from its Jack Hills operations to the port of will be considered before a recommendation is made to Geraldton in December 2006. The company expects API MANAGEMENT PTY LTD the Minister for Environment. to increase production to 2 Mt/a in 2008 before The Australian Premium Iron Joint Venture is Expenditure: $18m. proceeding to Stage 2, which would involve a further proposing to develop the West Pilbara Iron Ore Project. Employment: Construction: 35; Operation: 30 increase to 10-25 Mt/a of hematite and beneficiation Stage 1 of the project is based on the production of ore. The ore would be transported by a new railway to 20-30 Mt/a of direct shipping iron ore from a group Shark Bay - Coburn - Heavy Mineral Sands Mine a new deepwater port at Oakajee. A definitive feasibility of three mine sites located approximately 50 km study and exploration drilling program on its Jack Hills GUNSON RESOURCES LIMITED southwest of Pannawonica. The ore will be exported Stage 2 project is progressing. Gunson proposes to develop the Coburn mineral sands via a new railway and port facility located on the Expenditure: $750m. project, located south of Shark Bay, which contains Pilbara coast. Subject to the successful completion total ore reserves of 306 Mt at an average grade of Employment: Construction: 450; Operation: 350 of feasibility and environmental studies (in process), 1.2 per cent heavy minerals. All of these reserves lie Mid West Region - Mt Karara Magnetite Mine and receipt of Government regulatory approvals, the within the portion of the project area that has received GINDALBIE METALS LTD company anticipates that the first shipment will occur Government environmental approvals for mining. At Gindalbie Metals plans to develop a 12 Mt/a magnetite in early 2012. the proposed mining rate of 17.5 Mt/a, the Coburn concentrate project at Mt Karara, which has a resource Expenditure: $3b. mine life is estimated to be 17.5 years. In October 2007, life of about 50 years. Transport options for the ore are Employment: Construction: 1300; Operation: 700 Gunson signed a second MOU with CTIEC of China currently under investigation. The project is currently providing for CTIEC’s parent, CNBM, and an electric undergoing environmental assessment at a Public Pilbara Region - Rapid Growth Project 5 power supply company in the Chinese city of Bengbu, Environmental Review level. The company anticipates BHP BILLITON IRON ORE PTY LTD to take a combined 40 per cent share in the project. that first shipment will occur in Q1 2010, subject to BHPB is currently expanding the production capacity government approvals. A formal agreement between the parties is currently of its Western Australian iron ore operations to 155 being negotiated. It is planned that zircon-rich non- Expenditure: $1b. Mt/a by 2012, to supply international growth in iron magnetic concentrate from the Coburn mine will be Employment: Construction: 400; Operation: 240 ore demand, particularly from China. It is also in the shipped to a mineral separation plant in China for Mid West Region - Mungada Hematite Mine process of seeking approvals for a parallel expansion further processing. The magnetic fraction is to be GINDALBIE METALS LTD that would extend this to 205 Mt/a within the same sold in Geraldton as a final ilmenite product containing Gindalbie Metals is proposing to develop a direct period. The increased production involves mine 62 per cent TiO2. shipping hematite ore project of up to 3 Mt/a at expansions, railway duplication and additional berths Expenditure: $100m. Mungada, 85 km east of Morawa. The project is at Port Hedland. BHPB is also investigating further Employment: Construction: 170; Operation: 110 currently undergoing environmental assessment at a expansion to 300 Mt/a by 2015. Public Environmental Review level. Expenditure: $9b. Tutunup South - Heavy Mineral Sands Mine Expenditure: $75m. ILUKA RESOURCES LIMITED Employment: Construction: 200; Operation: 170 Iron Ore Processing Iluka proposes to develop the Tutunup South mineral sands mine, located approximately 15 km south east Mid West Region - Weld Range Iron Ore Mine Pilbara - Cape Preston - Iron Ore Processing of Busselton. The project will include the construction MIDWEST CORPORATION LIMITED CITIC PACIFIC of mine pits, solar drying dams, ore concentrator and Midwest Corporation proposes to develop a 15-20 CITIC Pacific, a Chinese company, received Ministerial associated mine infrastructure. The mine is expected Mt/a iron ore mine at Weld Range, 65 km southwest approval on 2 May 2008 for the development of a to produce over 1.2 Mt of heavy mineral concentrate of Meekatharra, producing a mix of hematite lump magnetite iron ore mine and pellet plant with a and fines. The project is expected to utilise a new rail over its five-to-six year life, which will be transported capacity of 6 Mt/a. Construction is due to begin this line and a new deepwater port facility at Oakajee. The to Capel for further processing. Tutunup South is year. A concentrator, pellet plant, slurry pipeline, company commenced an extensive drilling program in scheduled to commence operation in early 2009, June 2006 and is currently completing a pre-feasibility port facilities, 240 MW power station and desalination subject to obtaining necessary government approvals, study. plant will be built at Cape Preston, as well as and will replace Iluka’s Wagerup mine site. The project Expenditure: $800m. accommodation facilities. The company plans to export is currently in the Environmental Impact Assessment the first high-grade pellets to China in 2010. Employment: Construction: 900; Operation: 220 phase and is being assessed at the level of Public Expenditure: $3.5b. Pilbara - Atlas Iron Pardoo Hematite DSO Mine Environmental Review. Employment: Construction: 2500; Operation: 500 Expenditure: $25m. ATLAS IRON LTD Pilbara - Cape Preston - Mine and Pellet Plant Employment: Construction: 150; Operation: 40 In December 2008, Atlas Iron Ltd is due to commence shipping 1 Mt/a of hematite iron ore from its Pardoo MINERALOGY PTY LTD Iron Ore deposit, 75 km east of Port Hedland (subject to final The Iron Ore Processing (Mineralogy Pty Ltd) Government approvals). It plans to increase production Agreement is based on the development of Mineralogy to 3 Mt/a by 2010. Great Southern Region - Southdown Magnetite Mine Pty Ltd’s Fortescue magnetite deposits, located GRANGE RESOURCES LTD Employment: Operation: 70 near Cape Preston, 70 km southwest of Dampier. Grange is finalising a bankable feasibility study on Pilbara - Balla Balla Mineralogy has sold subsidiary companies with right- the Southdown magnetite project, 90 km northeast of AUROX RESOURCES LIMITED to-mine agreements to two purchasing companies, Albany. The company plans to produce an initial 3.3 Aurox has recently signed contracts for the design, CITIC Pacific Ltd and Australasian Resources, which Mt/a magnetite concentrate from 2012 stepping up engineering and manufacture of all major components are planning the development of separate projects to 6.6 Mt/a. The concentrate will be transported via required to commission both the mine and port aspects under the Mineralogy State Agreement. Australasian a slurry pipeline to the Port of Albany for export and of the Balla Balla magnetite iron ore project located Resources Ltd has announced an agreement with pelletising in Malaysia. The project is currently being mid-way between Karratha and Port Hedland. Aurox Shougang Corporation, which will fund a feasibility environmentally assessed at a Public Environmental has also signed two 15-year 3 Mt/a magnetite sales study on a combined concentrate/pellet and DRI Review level. Subject to environmental approvals, agreements with major Chinese steel companies. First project. If viable, Shougang will fund the project construction is anticipated to commence in 2009, with export of magnetite is expected in 2011. development, with Australasian keeping a 50 per cent commissioning Q4 2012. Pilbara - Iron Ore Mine - Roy Hill interest. Expenditure: $839m. HANCOCK PROSPECTING PTY LTD Expenditure: $5b. Employment: Construction: 700; Operation: 250 Hancock Prospecting Pty Ltd is undertaking a pre- Employment: Construction: 2500; Operation: 800

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

Molybdenum end engineering and design work for the project, it will appraisal activities and concept evaluation studies to consider a final investment decision on the project. select a preferred development concept in the latter Pilbara - Spinifex Ridge Molybdenum-Copper Mine Expenditure: $11b. half of 2008. Woodside is targeting an LNG production MOLY MINES LIMITED Employment: Construction: 3000; Operation: 600 facility capable of supporting up to 15 Mt/a of LNG. Start-up of LNG production is expected in the period The Spinifex Ridge Project is located 50 km northeast Browse Basin – Ichthys 2013 to 2015. of Marble Bar in the Pilbara region of Western INPEX Australia. It is based on a resource of 469 Mt at 0.06 Bonaparte Offshore Basin - Tern/Petrel - Gas Fields per cent molybdenum and 0.09 per cent copper. Moly The Ichthys gas and condensate field was discovered SANTOS LIMITED in 1980 and is located in 250 metres of water, Mines has completed a definitive feasibility study which The offshore Petrel gas field, discovered in 1969, is approximately 440 km north of Broome and 250 km has forecast 240 Mlbs of molybdenum concentrate and located about 250 km west of Darwin on the WA-NT from the mainland. Six discovery and appraisal wells 270 Mlbs of copper concentrate to be produced in the seabed border in the Bonaparte Basin. The offshore were drilled during 2000-2004. The P50 estimated first 10 years of the operation. The project’s processing Tern gas field, discovered in 1971, is located about recoverable resource in place is approximately 12.8 300 km west of Darwin in WA waters in the Bonaparte plant design capacity is at 20 Mt/a. The project is Tcf of gas and 527 mbbl of condensate and LPG. The undergoing environmental assessment. Basin. Field development options include installation permit is owned by Inpex Browse Ltd (76 per cent) of unmanned offshore production platforms with a Expenditure: $1.084b. and Total (24 per cent). Development of the field pipeline to a gas treatment plant south of Darwin. Employment: Construction: 400; Operation: 375 is planned to include offshore semi-submersible The development possibilities for these fields has facilities and a subsea pipeline to an offshore location, been enhanced by recent significant discoveries Nickel where approximately 8 Mt/a of LNG will be produced by other parties nearby, which may provide tie-in for export to the Asia-Pacific market, with the first potential for Petrel and Tern to service domestic Goongarrie - Kalgoorlie Nickel Project - shipment scheduled for 2012. The company is also gas customers. A conceptual plan involves initial Mine (laterite ore) and Hydrometallurgical looking at new technologies associated with gas-to- development of Petrel with a pipeline to an onshore Processing Plant liquids and dimethyl ether, as well as possibilities for gas plant and a subsequent phase that completes HERON RESOURCES LTD domestic supply. Petrel and develops Tern. This project will involve a mine and hydrometallurgical Expenditure: $10b. Expenditure: $1b. Employment: Construction: 2000; Operation: 500 processing plant at Goongarrie, about 85 km north Platinum Group Metals of Kalgoorlie, producing up to 50,000 t/a of nickel Carnarvon Offshore Basin - Macedon - Gas Field from laterite resources of 903 Mt grading 0.74 per BHP BILLITON PETROLEUM (AUSTRALIA) PTY LIMITED Halls Creek - Panton Sill-Platinum Project cent nickel and 0.05 per cent cobalt. Heron and Vale PLATINUM AUSTRALIA LIMITED Inco are undertaking a pre-feasibility study which The Macedon gas field, located about 50 km north of The Panton platinum-palladium deposit is located is due for completion in January 2009. Further ore Exmouth, was discovered in 1992 by the West Muiron-3 well, with a follow-up appraisal campaign in 1994. BHP 60 km north of Halls Creek in the Kimberley region reserve estimation, mine planning and metallurgical Billiton is continuing to investigate domestic market of Western Australia, and contains the highest grade testing will be undertaken. The main focus will be on opportunities for Macedon, which is estimated to known in Australia. A bankable feasibility study (BFS) development of three flowsheet applications, leading contain a gas resource of up to 1.2 Tcf. Gas recovered to has found that, while the project is technically sound, it to preliminary plant design, final flowsheeet selection date is dry, containing no condensate or LPG. is not commercially viable. The company is considering and new capital and operating cost estimates. updating the BFS during the first half of 2009 to assess Expenditure: $1.4b. Pilbara - Devil Creek Development Project the impact of current higher prices for platinum, Employment: Construction: 1000; Operation: 300 APACHE ENERGY LIMITED palladium and by-product nickel. Apache Energy Ltd and Santos Ltd are investigating the Pilbara - Platinum Deposit North Eastern Goldfields - Yakabindie Nickel Mine development of the Devil Creek Development Project BHP BILLITON NICKEL WEST PTY LTD (DCDP), a greenfield gas project comprised of an HELIX RESOURCES NL The Yakabindie project is based on a large nickel unmanned offshore gas production platform over the Helix Resources NL has established an indicated resource of 9.2 Mt at 2.9 g/t combined platinum, deposit situated near BHP Billiton’s existing Mt Keith Reindeer gas field, about 80 km northwest of Dampier; palladium, rhodium, and gold, 0.2 per cent nickel, and nickel project and is estimated to contain a resource offshore and onshore gas pipelines; an onshore gas 0.3 per cent copper at its project site near Karratha. of 289 Mt at 0.58% nickel. BHPB is considering processing plant near Devil Creek, 65km southwest of Karratha; and a sales gas export pipeline connected Preliminary mining studies suggested a mining rate developing Yakabindie as an integrated part of the to the Dampier to Bunbury Natural Gas Pipeline of combined open cut and underground production of Mt Keith project, and is conducting a pre-feasibility (DBNGP). The DCDP is designed to provide up to 300 TJ 1.5 Mt/a. Further activity was postponed in early 2003, study, including infill drilling of the ore body and per day of dry natural gas and between 160 kl to 800 kl as a result of poor exploration results and a decreased metallurgical testing. per day of gas condensate. All gas from the DCDP will palladium price. The project is under review. Expenditure: $20m. service the domestic gas market in Western Australia. Salt Pilbara - Nickel Mine Construction is scheduled to start by end 2008, with first gas delivered into the DBNGP by mid 2010, subject Exmouth Gulf - Yannarie Solar Salt Project SHERLOCK BAY NICKEL COMPANY to receiving all the required statutory approvals. STRAITS SALT PTY LTD Sherlock Bay Nickel Corporation owns the Sherlock Expenditure: $600m. Straits Salt is proposing to develop the Yannarie Bay nickel project, 120 km east of Karratha. The Employment: Construction: 200; Operation: 20 project is comprised of the Symonds and Discovery Solar Salt, a 4 Mt/a salt operation in the east coast deposits. The ore body extends over a length of Pilbara - LNG Plant of Exmouth Gulf. It has exploration licences over approximately 1.6 km and varies in width between 5 BHP BILLITON PETROLEUM (AUSTRALIA) PTY LIMITED the area and has applied for a mining lease. The proposal was assessed at the Environmental Review m and 35 m. The deposits contain a combined proven BHP Billiton Petroleum and Exxon Mobil are working and Management Program level by the EPA. A resource of 25.4 Mt at 0.4 per cent nickel, 0.09 per together to identify the optimal development plan for statement released on 23 July 2008, EPA Report 1295, cent copper and 0.02 per cent cobalt. This resource is the commercial development of the Scarborough gas recommended against approval for the Yannarie Solar expected to give a project life of 12 years. Processing of field located offshore in about 900 metres of water Salt proposal. the ore will use the BioHeap bulk heap leach process, and about 280 km northwest of Onslow. The project Expenditure: $200m. which will produce metal with an expected recovery of is examining a number of concepts including the 88 per cent. development of an associated 6 Mt/a LNG plant at a Employment: Construction: 100; Operation: 75 site approximately 4.5 km southwest of Onslow. The Expenditure: $30m. LNG produced may be sold to the American west coast Timber and Asian energy markets. Oil & Gas Developments Mirambeena Timber Processing Precinct - Expenditure: $5b. Engineered Strand Lumber Carnarvon Offshore Basin - Barrow Island - Employment: Construction: 2400; Operation: 125 LIGNOR LTD Gorgon LNG Browse Basin - Scott Reef/Brecknock - Gas Fields Lignor Ltd is proposing the development of CHEVRON AUSTRALIA PTY LTD WOODSIDE ENERGY an engineered strand lumber plant located at In December 2007, the Gorgon Joint Venture (GJV) Woodside discovered gas and condensate at Torosa Mirambeena, near Albany. The plant will source most announced its intention to upgrade the project (Scott Reef) in 1971, Brecknock in 1979 and Calliance of its timber from the extensive eucalypt plantations specifications from a 10Mt/a (2 train) to a 15Mt/a (3 (Brecknock South) in 2000. The fields are located growing in the Albany region and will use technology train) development on Barrow Island. The project in water depths of up to 800 metres, about 425 km developed by the German engineering company, is based on gas from both the Gorgon and Jansz northwest of Broome and 250 km from the mainland. Siempelkamp. The company has completed its fields. The GJV is also considering a domestic gas The reserves in these fields are currently held as a feasibility study. Further project development has been development on Barrow Island. The GJV obtained contingent resource and are estimated to be in excess put on hold pending more favourable global market environmental approval for the 10Mt/a development in of 20 Tcf of gas and 300 Mbbls of condensate. During conditions. late 2007. Once the GJV has obtained environmental 2007 and 2008 Woodside (Operator and 50 per cent Expenditure: $350m. approvals for the additional train and completed front- interest holder) is planning to continue with field Employment: Construction: 400; Operation: 140

27 Prospect Changes in store for Indian

mining A Western Australian trade and investment delegation visited India in July this year.

India has a wealth of natural transparent and welcoming investment established, proposing legislative resources but its mining sector framework for foreign mining companies. changes that would finally encourage remains relatively underdeveloped. meaningful investment in mining and Western Australia has an important As explained by Simon Johnson, exploration. A high level committee interest in this process because of chaired by Anwarul Hoda was the India Regional Director of the the potential for new opportunities Western Australian Global Network, established in 2005 by the Indian for trade and collaboration. India is National Planning Commission. this could all be about to change. already Western Australia’s fourth largest export market and contributed The main findings of what became Though their mining sectors are vastly A$5 billion value to the State in 2007. known as the Hoda Report included different in terms of development the allowance for stand-alone and economic potential, India and Western Australia has two Indian mining, rationalisation of royalty Western Australia both have vast trade offices, at Chennai and Mumbai, endowments of natural resources. regimes to encourage market-based that facilitate trade between the two pricing, streamlining of conversion The eastern Indian states of Orissa, regions. The growing importance of of mining leases, and reduction of Chhattisgarh, Jharkhand and West India to Western Australia was reflected the discretionary use of government Bengal in particular, are home to in a State trade and investment powers in granting leases. world-class reserves of iron ore, mission to the country in July. bauxite, chromite and manganese. The report also allowed for the continued Western Australia also has a Coal too is common and is treated as provision, in certain circumstances, of Memorandum of Understanding a separate industry sector to other captive mining, whereby end users such (MoU) with India for the exchange of mining, with its own relevant ministry. as power companies will undertake environmental and mining management mining for their own purposes. Despite the country’s natural wealth, technologies, and another relating mining at present contributes just to petroleum is being considered. States were likewise permitted to 2 per cent to India’s gross domestic continue giving preference to miners that The process of reforming India’s mining product and mining operations are committed to investing in value-added sector began in the 1990s, when the small-to-medium in size and often industries, where it was an option. run by government operations. approach to foreign direct investment (FDI) in mining became more welcoming. After much deliberation, the Hoda This is vastly different to the Report received cabinet approval situation in Western Australia, where In 1993 a new national mining policy was following some amendments. multinational firms regularly announce introduced and by 2006, FDI of 100 per new multi-billion-dollar mining cent was permitted for exploration and The Indian Ministry of Mines has projects, and the combined mining mining of gold, silver and minerals other since published new rules and and petroleum sectors contribute 30 than those for metallurgy and processing, regulations governing the national per cent to gross state product. and by approval for diamonds and mining policy which accepted precious stones. most of the recommendations. India’s inability until now to capitalise on its resources wealth has been While allowing for foreign investment The new rules and regulations were attributed to a variety of factors, in theory, these initial reforms proved expected to be presented to parliament including the steel and power industries insufficient at attracting any real in August 2008 and it is hoped they protecting their interests through interest and to date there has not been will soon pass into legislation. lobbying for a highly regulated sector. a single mining production lease issued to any foreign company in India. There is a chance for further delays Many officials in both central as a result of an upcoming election and state governments have also In the iron ore sector, no new and continued contention, but there supported the status quo, while greenfield projects have opened in the are real hopes for a period of new issues concerning land rights and past two decades despite a plethora prosperity in the Indian mining sector. the environment have contributed. of MoUs being signed between companies and state governments. With Western Australia poised to become However in the past few years real an Asia-Pacific mining services sector progress has been made in efforts to To address these concerns, a review leader, this could provide immense 28 change this situation and create a more of the national mining policy was opportunities for years to come. Prospect Significant resource projects in Western Australia Visit us online Western Australia continues to lead the way as Australia’s premier resources investment destination. Despite several significant projects Prospect can be downloaded free of moving to the operational stage since the last edition of Prospect, there charge from the Internet by visiting the are still more than A$90 billion worth of projects either committed or website of the Department of Industry under consideration during the next few years. These will create more and Resources at: www.doir.wa.gov.au than 34,000 construction and more than 8900 full-time jobs.

Project Value Employment (estimated A$m) Construction Permanent Prospect Alumina Subscription/Change of address Alcoa - Wagerup/Willowdale Refinery Train 3 Expansion 1500 1500 260 ABN: 69 410 35 356 Worsley Alumina - Refinery Expansion 2500 1500 200 Sub Total 4000 3000 460 Iron and Steel Asia Iron - Extension Hill Magnetite Mine 715 1000 280 Name: Australian Premium Iron Joint Venture - Iron Ore Mine 3000 1300 700 BHP Billiton Iron Ore - Rapid Growth Projects 9000 - - Hamersley Iron - Brockman 4 and Dampier Port Expansion 2420 800 200 z Fortescue Metals Group - Mine, Rail and Port Project 3200 2500 870 Gindalbie Metals - Karara Magnetite Mine 1000 400 240 Position: Grange Resources - Southdown Magnetite Mine 839 700 250 HIsmelt - Commercial Iron Making Plant 800 320 65 Hope Downs Limited - Iron Ore Mine - - 280 Organisation: Midwest Corporation - Weld Range Hematite Mine 800 900 220 Mineralogy and CITIC Pacific - Cape Preston Mine and 8500 5000 1300 Address: Processing Projects Murchison Metals - Jack Hills Stage 2 Hematite Mine 750 450 350 Robe River - Cape Lambert Port Expansion 1100 450 70 z Sub Total 32124 13820 4825 Nickel/Cobalt Type of business: Heron Resources - Goongarrie Mine and Plant 1400 1000 300 Sub Total 1400 1000 300 Oil, Gas and Condensate Phone number: Apache - Devil Creek Project 600 200 20 Apache - Van Gogh Oil Field 600 - - Email BHP Billiton - Onslow LNG Plant 5000 2400 125 BHP Billiton - Pyrenees Oil Project 2000 - - Please tick the appropriate box Please add me to your mailing list to receive Gorgon Joint Venture LNG Project 11000 3000 600 Prospect magazine. I would like a subscription for Inpex - Ichthys LNG Project 10000 2000 500 one year @ $12 (incl. GST) North West Shelf Venture - LNG Phase V Expansion 2425 1500 20 two years @ $22 (incl. GST) Santos - Tern Petrel Gasfield Project 1000 - - three years @ $32 (incl. GST) Woodside - Angel Gas/Condensate Project 1600 - - My cheque, made out to the Department of Industry Woodside - Pluto LNG Plant 11200 3000 200 and Resources, is enclosed OR please debit the Woodside - Vincent Oil Project 1000 - - amount to my credit card using the following details: Sub Total 46425 12100 1465 Type of card: Visa Bankcard Mastercard Other

Argyle Diamonds - Underground Mine (Stage 1) 1200 250 500 Expiry date Aviva Corporation - Mid West Power 1000 600 100 This form will become a tax invoice for GST purposes when payment is made. BGM - Boddington Wandoo Gold Mine Expansion 2000 1500 650 Change of address Dyno Nobel - Burrup Ammonia Plant 900 1000 130 (please make changes required on one of your old labels). Griffin Coal - Blueswater III & IV 800 600 30 Please photocopy or cut coupon and mail to: Griffin Energy - Bluewaters 1 and 2 Coal Fired Power Prospect subscriptions 400 600 50 Stations Information Centre Department of Industry and Resources Moly Mines - Spinifex Molybdenum/Copper Mine 1084 400 375 Mineral House, 100 Plain Street Straits Resources - Yannarie Salt Project 200 100 75 East Perth, Western Australia 6004 Sub Total 7584 5050 1910 TOTAL 91533 34970 8960 September 2008 Major Resource Development Projects: Western Australia

INSET B Mutineer/ INSET C Sunrise. Exeter/ CampbellP Troubador . EaglehawkEgretHermes Endymion Searipple  Lambert Wonnich P . Kelp Deep Capella PP / / P Angel  /Sinbad .Doric/Ulidia  Cossack Bambra. .Linda Perseus P PNorth  /Jahal Gaea/ Wanaea Harriet/Gudrun BLee. Laminaria Chudditch. Dockrell IshmaelP Rankin  Legendre /RoseC PPMonty Keast PP Goodwyn Varanus Island A Echo/Yodel P P North Alkimos Goodwyn SouthTidepole Burrup Peninsula  GipsyPJosephine Io/JanszP . P Agincourt   Bayu-Undan Urania . Rankin/ Dixon/West Dixon Ammonia Monet/Simpson / S.Plato P Wheatstone Sculptor Little Sandy/Pedirka/North Pedirka/ . . . Iago Ammonia-urea /Tanami /  Eurytion Geryon Reindeer . . Hoover Victoria Pluto P Wilcox Ammonium Nitrate / Double island CaribouP Barrow Gorgon Corvus.  Desalination / Jabiru .Orthrus Island Maenad. Wandoo  LNG Barrow Island / Challis/Cassini PChrysaor/Dionysus Harriet Oil and Gas Puffin/ PWest Tryal Rocks Pluto LNG / / Stag Development Area Skua /Montara SEE INSET C . Petrel John Brookes . Cape Lambert . Crux Gorgon P Parker Point L L Spar . Dampier . Dampier Salt N ) Tern Cape Preston Cape Lambert L Karratha . Torosa . PIchthys Blacktip Woollybutt / I ) Radio Hill . Brecknock ) :Whundo Cu Zn + Munni Munni . Calliance Griffin Oil )Balmoral South Turtle / Development Area = Mitchell Plateau  / Eskdale/ Ord Stage 2-M2 Skiddaw WyndhamL  / / Vincent Yammaderry Crest Ord Stage 2-Mantinea Flats  Stybarrow / /  Saladin Koolan Island   ./  ) : Laverda Pyrenees Group Cowle  Skate Cockatoo Island ) ) Ord Stage 1 Sorby Hills . L al Gas Pipeline )  Roller Robe Middle Robe Mesas Lake Argyle Hydro  Zn Pb Ag Macedon NOnslow ) Robe Mesa J Mesa A Stickle . Pilbara LNG ) Bungaroo Creek Tubridgi KIMBERLEY ? erth-Dampier Natur Argyle P DerbyL Lloyd N Boundary Yannarie West Terrace // Sally MalayI Homestead ) / ? Ellendale Silvergrass ) Sundown ICopernicus L Blina Panton + Nammuldi ) Broome Liveringa C Manyingee Brockman 2 ) / Rough Range Brockman 4 ) :Pillara Zn Pb : 0 100 E Paulsens 200 km Koongie Park Zn Cu Ag : RESOURCE SYMBOLS Admiral Bay Zn Pb Ag Bauxite-Alumina <Alumina refineries = SEE INSET B Mines and deposits Chemicals / Petrochemicals / Petroleum Coyote E Processing plants / refineries Port Hedland .Natural gas field Scarborough . ) Pardoo L L NPort Hedland Salt /Oil field Finucane Island  Ronsard IslandL 6Balla Balla ) Nimingarra Natural gas / oil field :Salt Creek Zn Pb Yarrie) PNatural gas / condensate field I Sherlock Bay Natural gas / oil / condensate field : Whim Creek Cu : Chromite EIndee Spinifex Ridge Mo Cu > Wodgina O Mines and deposits : Sulphur Springs Zn Cu Clays Brick / tile processing plants ) Abydos Woodie Woodie M : Coal E Telfer Au Cu C Nifty Cu Coal/char/coal bed methane (CBM) mines and deposits PILBARA Golden EagleE Lignite mines and deposits MAnt Hill : Copper-Lead-Zinc )Solomon ) ) Cloud Break Maroochydore Cu Co N :Mines and deposits Koodaideri)Marillana)Christmas Creek Kintyre Lake Auld Diamonds Marandoo Western 4 ) Roy Hill ) )Yandi/BHPB Potash ?Mines and deposits Tom Price) ) Yandicoogina/HI Beasley River ) ) ) ) Mindy Mindy Gold Mining Area C ) )  E Turner Syncline West Hope Downs ) Rhodes Ridge Mines and deposits Paraburdoo)West Angelas ) )East Angelas Gypsum Western Range ) ) ) Eastern Range))Turee Syncline ) Orebody 23, 25 & 18 SMines and deposits )Channar Giles Mini )Jimblebar N Mt Whaleback Lake Heavy mineral sands > Coobina Disappointment H Prairie Downs: )Robertson Range Mines and deposits — titanium-bearing sands Potash 'Mines and deposits — garnet-bearing sands *Ti02 pigment and synthetic rutile plants Iron ore L S Lake MacLeod ) : Mines and deposits N Lake MacLeod Abra Pb Cu Au 9Downstream processing plants Limestone-Limesand Mines and Deposits Carnarvon #Cement plants Plutonic E Magnesite Fortnum E KMines and Deposits Manganese ore MMines and deposits Nickel Wingellina Jack Hills) IMines and deposits I Q Shark BayLN EJundee/Nimary Smelters and refineries I Magellan Pb: Phosphate West Musgrave H Meekatharra Gabanintha WilunaE 0 Coburn E ) Mines and deposits Weld Range ) 6Wiluna West Platinoids I Honeymoon WellI Lake Way E Lake Maitland +Mines and deposits Burnakura Nowthanna Yeelirrie EGidgee IMt Keith Rare earth elements YakabindieI E Bronzewing/Mt McClure 2Mines and deposits Barrambie 6 I Salt/Potash Cosmos Waterloo EMoolart Well NProduction facilities / pans LeinsterI EDarlot INSET A Sandstone PlantAgnew E I Thatcher Silica - Silica Sand Kwinana/Rockingham Port Gregory Hill 50 E E E Soak RMines and deposits ) Tallering Peak Lawlers ' Lords Henry & NelsonE K Marshall IMt Windara 8Silicon smelters L AIS Jetty 0 50km 6 SinclairIIK Pool Eradu Pig Iron Windimurra Jaguar Zn Cu: SickleE Talc < Alumina Refinery H Gullewa Au Cu E Whisper E Brightstar 4 Gingin OakajeeL E Kirkalocka Plant Tarmoola E E E Mikado Mines and deposits Narngulu Synthetic : Golden Grove Zn Cu KI Tantalum Ammonium Nitrate L E 0 Chandala Geraldton *RutileIrwin RiverMinjarE Gossan Hill Ag Au Sons of GwaliaEMurrin E 2Mt Weld OMines and deposits BP Oil Refinery Alinta Wind farm CMt Karara Mt Mulgine ESunrise Dam * Synthetic  PMount Horner ))EBlue Hills ) Mt. Mason Murrin Uranium # Cement and Lime Yardarino. )Koolanooka Granny Smith–Wallaby Rutile Centauri 1 / Hovea–Eremia E Red October Mines and deposits Chlor Alkali Neerabup Frankland Dongara /P/ Xyris )Koolanooka South  Cliff Head//H Apium E Vanadium-Titanium Chemicals /Dongara4 ThHMree Springs Lake Giles ) Malaga Brick Jingemia.P ) Mt Gibson Jump Up Dam I 6Mines and deposits  Desalination Middle Swan Brick Beharra Springs/ E Mulga Rock Midland Brick P H Eneabba Canegrass Fertilizers Woodada Mt GibsonWindarling Range) IGoongarrie UPERTH C Davyhurst E I E Carosue Dam NON-MINERAL PROJECTS Airport Brick Tarantula Central West I E  Fused Alumina Caversham Tile Mt Jackson) CawseI Scotia Lindsays Find Irrigation/water schemes Coolimba ) IBlack Swan L Fused Zirconia L  Bungalbin East Paddington Major port handling facilities Fremantle Cooljarloo NorthH Emu Downs Wind Farm EE E Kanowna Belle – Red Hill  9 HIsmelt Mt Pleasant E QIBulong Major power stations Armadale Brick Cooljarloo H Koolyanobbing ) KundanaE Avalon Plant  HCataby ESuper Pit Downstream timber processing plant Cardup Brick QKalgoorlie Ni Smelter Gas pipeline Proposed gas pipeline Coolgardie-Redemption E IBlair-Area57 SEE INSET A Westonia Mt MarionE CarnilyaIEAldiss–Randalls OPERATING PROJECTS ARE SHOWN IN BLUE Q E Long–Victor IIKambalda Concentrator HKeysbrook Marvel LochE Nepean I I I Beta-Hunt POTENTIAL PROJECTS ARE SHOWN IN RED  E Spargoville ESt Ives PROJECTS ON CARE AND MAINTENANCE ARE Yilgarn Star Wattle DamEI O Pinjarra Armstrong I I Bald Hill SHOWN IN PURPLE < Miitel–Redross E Lanfranchi * PERTHU Trident <=Huntly E Emily Ann – Maggie Hays I E Central Norseman WaroonaH < I Forrestania Wagerup = Kemerton H Saddleback O'Sullivans Chlor Alkali 8 R Silicon Smelter  Scaddan