WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE March–May 2007 $3 (inc GST) Print post approved PP 665002/00062 approved Print post

WATER The potential impact of climate change and lower rainfall on the resources sector

PLUTO PROJECT Site works begin on the first new LNG project in WA for 25 years

PORT STUDY Ronsard Island recommended as the site for a new Pilbara iron ore port 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]

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India — Chennai Western Australian Trade Office - Advisory Office 1 Doshi Regency • 876 Poonamallee High Road From the Director General Kilpauk • Chennai 600 084 • INDIA Tel: +91 44 2640 0407 • Fax: +91 44 2643 0064 Email: [email protected]

Indonesia — Jakarta Western Australia Trade Office A climate for opportunities and change JI H R Rasuna Said Kav - Kuningan Jakarta 12940 • INDONESIA Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 Many experts and analysts are forecasting that 2007 will bring exciting new Email: [email protected] opportunities and developments in the resources industry in Western Australia. Japan — Tokyo Government of Western Australia, Tokyo Office 13th floor, Fukoku Seimei Building Capacity expansions promise to make 2007 a buoyant year for most sectors of the 2-2-2 Uchisaiwai-cho Chiyoda-ku • Tokyo 100-0011 • JAPAN minerals industry, particularly iron ore. This assumes, of course, that the Chinese Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 Email: [email protected] economy continues to expand at around 10 per cent, which is in line with forecasts made by the World Bank and others. Japan — Kobe Western Australian Government Office 6th floor, Golden Sun Building • 4-3-6 Nakayamate-dori Accordingly, I expect that the value of minerals and petroleum in Western Australia will Chuo-Ku • Kobe 650-0004 • JAPAN Tel: +81 78 242 7705 • Fax: +81 78 242 7707 exceed the $43 billion recorded during 2005/06. Email: [email protected] However, growth always brings its own challenges. Malaysia — Kuala Lumpur Western Australian Trade Office 4th floor, UBN Tower • 10 Jalan P Ramlee Principal among these, on a global and national scale, are climate change and water. KUALA LUMPUR 50250 • MALAYSIA These have become topics of intense public interest and debate, and are on many Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 Email: [email protected] peoples’ minds at the moment. Middle East — Dubai Western Australian Trade Office • Emarat Atrium One of the manifestations of climate change in Australia is the changing patterns PO Box 58007 • Dubai • UNITED ARAB EMIRATES of rainfall distribution. This will have a major impact on the structure of regional Tel: +971 4 343 3226 • Fax: +971 4 343 3238 economies in WA over decades to come. How we secure future water supplies, allocate E-mail: [email protected] that water and use it in a sustainable fashion will become a major challenge for the People’s Republic of China — Shanghai Western Australian Trade & Investment Promotion resources sector. Shanghai Representative Office • Room 2208, CITIC Square 1168 Nanjing Road West • Shanghai 200041 So, it is appropriate that water is the focus of this edition of Prospect. PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected] Other articles relate to site recommendations for a new port in the Pilbara, the People’s Republic of China — Hangzhou potential for a major kaolin export trade being developed for Western Australia and Western Australian Trade & Investment Promotion updates on the Pluto and Gorgon gas projects. Hangzhou Representative Office Room 1705 • World Trade Office Plaza Zhejiang World Trade Centre I hope you findProspect both interesting and stimulating. 122 Chuguang Road • Hangzhou 310007 PEOPLES REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Email: [email protected]

Dr Jim Limerick South Korea — Seoul Western Australian Trade & Investment Office 11th floor, Kyobo Building 1 Jongro 1-Ga, Jongro-Gu Seoul 110-714 • SOUTH KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected]

Prospect Cover photo: Griffin Coal’s Ian Pigott eyes early-season run-off Taiwan — Taipei Western Australian Prospect magazine is published quarterly from the east branch of the Collie River prior to the water’s Australian Commerce & Industry Office by the Western Australian Government’s Department of disposal into a disused mine void at Chicken Creek. It is all part Suite 2606, International Trade Building Industry and Resources (DoIR). of a plan to reduce salinity levels in nearby Wellington Dam. #333 Keelung Road Section 1 • Taipei 110 • TAIWAN Turn to page 11 for more details. Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 Editorial management: John Terrell, DoIR Communications and Email: [email protected] Marketing Division. Tel: (08) 9222 3804 • Fax: (08) 9222 3069 Hong Kong Australian Trade Commission Disclaimer Hong Kong Office Rm. 2404, 24/F., Harbour Centre Prospect has been compiled in good faith by the Department 25 Harbour Road, Wan Chai • HONG KONG of Industry and Resources. Opinions expressed in Prospect are those of the authors and do not necessarily represent the views, or have Tel: +852 2588 5300 • Fax: +852 2827 4145 the endorsement of the Department of Industry and Resources. The Department of Industry and Resources has used all reasonable endeavours Thailand — Bangkok to ensure the material contained in this publication is correct, but it is Australian Trade Commission • Australian Embassy intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. The 37 South Sathorn Road • Bangkok 10120 • THAILAND Department of Industry and Resources disclaims any or all liability for Department of Tel: +662 344 6337 • Fax: +662 344 6306 loss or damage whatsoever suffered or incurred resulting from the use of Email: [email protected] or reliance on information contained herein. Readers of this publication Industry and Resources should make and rely on their own enquiries, research and judgements in United States — Los Angeles making decisions affecting their own or any other persons interest. www.doir.wa.gov.au Western Australian Trade and & Investment Office Howard Hughes Centre, 6080 Centre Drive, 6th Floor Los Angeles, CA 90045 • USA Tel: +1 310 216 2827 / Fax: +1 310 216 5632 2 The year ahead — Experts are predicting a good year for the Western Australian resources sector in 2007.

4 New Pilbara port — Consultants choose Ronsard Island as the best option for a new iron ore port in the Pilbara.

7 Kaolin — Promising signs that the State’s kaolin industry will grow significantly in the years ahead.

8 WATER FEATURE

19 Base metals — The reopening of the Pillara zinc-lead mine.

21 Support industries — The transportable building industry in Western Australia is thriving, thanks to a buoyant resources sector.

22 Air quality report — Early science-based evidence suggests the air on the Burrup Peninsula won’t damage people’s health or corrode local rock art.

23 Gorgon project — Strict environmental conditions being set for the Gorgon project includes the protection of flatback turtles around Barrow island.

32 Sir David — World renowned environmentalist Sir David Attenborough visits Western Australia’s Mt Keith nickel project for a special reason.

WATER — meeting new challenges

Most of us acknowledge the realities of climate change, and the rising cost and scarcity of water. This edition of Prospect looks at how the resources sector in Western Australia is tackling water management. Solid year ahead, say the experts

2007 will see the start of a research agency, has forecast a 13 per a strong demand for WA minerals for significant transition for resource cent increase in Australian commodity a generation, and hence the State’s development in Australia — from exports to around $140 billion in 2006/07. economy overall will remain buoyant for many years to come.” a massive lift in investment to a About $111 billion of this will be in the massive lift in resources production. form of mineral and energy exports, The outlook for the Australian petroleum which are expected to rise by about industry in 2007 remains relatively Western Australia will lead the nation’s 20 per cent on the previous year. positive, according to Richard Ellis, resources export charge with major who is WA Director of the Australian iron ore investment in projects such as ABARE says the outlook for minerals Petroleum Production & Exploration BHP Billiton’s Rapid Growth Project, generally remains positive, with further Association Limited (APPEA). Hamersley Iron’s Yandicoogina expansion price increases anticipated for many and Fortescue Metals’ iron ore project, all commodities including iron ore, gold, He said the industry was of enormous of which are expected to start production aluminium, nickel, copper and zinc. significance to Western Australia, and this year. These three projects alone would remain so for some time to come. are worth $7 billion, with another $70 The Minerals Council of Australia also billion worth of various resource projects predicts another bumper year for the “Petroleum is one of the largest resource under consideration throughout Western resources sector in Western Australia sectors by value, generating annual sales Australia. in 2007. of around $15 billion. It also accounts for 38 per cent of State royalty receipts and Access Economics consultant David The Chief Executive of the Minerals directly employs nearly 5000 Western Rumbens, believes the transition from Council of Australia, Mitchell Hooke, Australians in production alone,” he said. investment to production will actually be said China and India were experiencing more apparent in 2008 than this year. industrial revolutions, just like Japan “A number of opportunities and had enjoyed in the post World War II challenges face the industry in 2007. “That doesn’t mean that investment in era — and they would need Australian resource development in the West won’t resources to achieve their nation-building “While Australia now imports more crude remain very high,” Mr Rumbens said. goals. oil than it exports, and oil production “It will, with investment continuing to will continue to gradually decline as grow in 2007, and companies making The combined profits of mining companies fields mature, the LNG sector is a bright magnificent profits along the way.” rose 74 per cent to $11.8 billion last light on the horizon. Australian LNG financial year, the highest ever. production is currently around 15 Mt/a, He warned, however, that capacity with the vast majority of this coming constraints would remain tight. The “We remain confident that we are a from the North West Shelf Project. LNG recent leap in construction costs would couple of years into a super cycle of production could build to around 60 Mt/a cause the delay or deferral of some demand,” Mr Hooke said. by 2015 if the Pluto, Gorgon, Ichthys, projects, but these may “get another Browse and Scarborough projects look” when competition for skilled labour These sentiments were endorsed by proceed. has abated. another expert, AMP Capital’s Chief Economist Dr Shane Oliver, who issued “The driving force behind this positive The Australian Bureau of Agricultural this positive statement: “While there may outlook for LNG is demand for energy and Resource Economics (ABARE), be some ups and downs along the way, from the Asia-Pacific region coupled with Australia’s largest applied economic China and India will effectively guarantee recognition of the environmental benefits

 Prospect Call for federal infrastructure support

Loading up: Mining companies are expected to reap Western Australian Treasurer redistribution that occurs through the solid returns after making huge capital investments in resource projects in Western Australia in recent years. Eric Ripper wants the Federal Grants Commission process. Government to create a national To sustain export growth, the State’s export infrastructure fund to help social and economic infrastructure support expansion of the nation’s requires significant expansion and key export industries. upgrade.

Western Australia is Australia’s largest Mr Ripper said projects that could export State, accounting for one-third require infrastructure funding support of the nation’s exports, with most of from the Commonwealth include: the exports involving commodities from the State’s booming $43 billion a year • The expansion of the Boddington resources sector. gold mine; • The Gorgon gas project; of gas as a fuel source. With market Mr Ripper says the Commonwealth opportunities in countries such as generally receives the lion’s share • Prospective offshore petroleum Japan, China, Korea, the US and India, of fiscal benefits from resource developments in the Browse Basin; LNG demand is projected to more than developments through its broad- • The Ravensthorpe nickel project; double by 2015 and Western Australia based revenue sources, particularly petroleum resource rent tax, company will continue to be the major focus for • Upgrading of broadband services the sector. tax and personal income tax. The fiscal in regional and remote areas of WA; benefit for State governments is diluted and “Industry planning for 2007 indicates through lack of access to offshore some possible growth in exploration petroleum royalties (other than from the • The new MetroRail project between in terms of both seismic and drilling,” North West Shelf Project) and the Mandurah and Perth. Mr Ellis said. Encouraging exploration, particularly in frontier areas, is vital if we are to turn around the decline in oil production. Increased costs, availability of plant and equipment and the skills shortage will continue to be a constraint in the year ahead.”

Ian Loftus, the Policy and Public Affairs Manager for AMEC, the peak industry body for junior and mid-size mineral exploration and mining companies in Australia, said declining mineral exploration in Western Australia was a worry, particularly greenfields exploration.

ABARE figures show that mineral exploration in Western Australia dropped from $606 million in 2004/05 to $590 million in 2005/06. It subsequently rose by 24 per cent in the September quarter 2006.

Western Australia is still by far the most popular — and prospective — part of the country for mineral exploration. Exploration spending was more than double Queensland’s total of $218 million and more than four times that recorded by South Australia ($146 Call for Federal assistance: The Western Australian Government has asked the Federal Government to provide funding million) in 2005/06. support for nation-building infrastructure such as port, rail and broadband facilities in WA.

 Prospect Ronsard Island is first choice for new Pilbara port

Port Hedland Indian Ocean Cape Thouin

Cape Lambert/ Ronsard Port Walcott Dampier Island West Sherlock River Intercourse Is.

Cape Preston Karratha Roebourne

Railway Networks Roads Western Australia

Ronsard Island, less than a Previous research work undertaken by • Potential environmental impacts; kilometre offshore and roughly the Western Australian Government • Capacity to meet the future needs of midway between Port Hedland and and industry had been positive towards the industry; Dampier, has been recommended as Ronsard Island, and consultants Worley the site for the Pilbara’s next major Parsons independently confirmed this • Proximity to supporting iron ore port. location as the best option for a future infrastructure; port development. Engineering consultants Worley Parsons • The availability of construction have identified Ronsard Island as having Any new port would be funded materials; the most potential of six possible sites predominantly by the private sector, • Concerns with geology and in the area. The other locations are with the government’s input likely to Sherlock River (Depuch Island), Cape geotechnical issues; be recouped from common-user port Preston, West Intercourse Island, Cape charges. Lambert and Cape Thouin. • Concerns with potential flooding;

It is expected that existing ports at Major companies would be able to • The relative degree of shelter; and develop their own integrated facilities, Dampier, Port Hedland and Cape • The relative development costs of Lambert will exceed their capacity within while smaller companies and shipping providing basic infrastructure. a decade. interests would have access to other facilities at the proposed new port. The Further investigation of environmental, With iron ore exports potentially growing facilities would probably be managed by from 235 Mt/a to as much as 595 Mt/a heritage, marine, coastal engineering, a port authority. over the next 10 years, and as high as 890 geological and geotechnical issues Mt/a by 2025, a major new iron ore port Factors considered in assessing the will now be undertaken to confirm the will be required in the Pilbara — and it suitability of sites for a new iron ore port suitability of Ronsard Island. may come within six years. included: The Government will consult with However, a more likely timeframe • Proximity to likely areas of iron ore stakeholders including industry, local is around 2015 to 2017, according to mining expansion; Planning and Infrastructure Minister government and indigenous communities Alannah MacTiernan. • Potential heritage impacts; during these investigations.

 Prospect First steps for Pluto — with a global future ahead

Site works have started on the With around 4 Mt/a of LNG sales expected Ground work begins: Clearing commences on the Burrup Peninsula to accommodate multi-billion dollar gas Burrup Peninsula where gas from from Pluto, and Woodside’s Browse Basin processing facilities for Woodside’s Pluto project. It will be the Pluto field and potentially other development also making good progress, the first new LNG project in Western Australia for a quarter Western Australia could be the Asia-Pacific of a century. stranded gas reserves in the region region’s largest exporter of LNG by 2013 Woodside will relocate 150 engravings to will be processed for the export with potential sales of more than 40 Mt/a. undeveloped areas within its leases, in LNG market. It will be Western consultation with traditional custodians. Australia’s first new LNG project The onshore gas processing facilities will in 25 years. initially have a LNG production capacity The development of Pluto is on schedule of 5-6 Mt/a. Approvals are also being to deliver its first LNG shipments by In December 2006, Woodside Energy sought for 12 Mt/a of LNG and domestic the end of 2010, as per a customer approved commitments of up to $1.4 gas production to allow for future agreement with Kansai Electric and billion for site preparation and long- expansion and possible supply to Western Tokyo Gas. lead items ahead of a final investment Australian customers. Woodside claims The Pluto field was discovered in April decision, which is due in mid 2007. the “open access” model being adopted provides capital efficiencies for all gas 2005, less than two years after the WA- Following the granting of State and owners in the area and will allow early 350-P permit was awarded to Woodside. Commonwealth environmental and commercialisation of resources which With the first appraisal well completed heritage approvals, site preparation for may otherwise languish. by July 2005, Woodside announced its the LNG storage tanks began recently. intention to develop an LNG project based Woodside’s intention is not to destroy any on the Pluto field a month later. Contractors Foster Wheeler rock art in developing the Pluto project. WorleyParsons and BGC have started Through extensive consultation with Economic modelling indicates the Pluto work on Industrial Site A, the location traditional custodians, archaeologists, LNG development will create thousands for the LNG storage tanks and export anthropologists and government of jobs, contribute $17.6 billion to the jetty. LNG storage tanks will take longer agencies, design of the Pluto facilities national economy and $28.6 billion to to construct than other infrastructure, has been modified to ensure heritage the WA economy, and provide significant hence the early site work. sites are avoided where possible. As a opportunities for local businesses. It will result, 95 per cent of the 3000 engravings generate up to $8.5 billion in government Site preparation will include fencing, on the Pluto leases will be undisturbed revenues. road access, relocating cultural heritage by the development. This activity will material, installation of temporary have no impact on the proposed 5000 Capital expenditure on the Pluto project facilities, and bulk earthworks. It is hectare Burrup Peninsula Conservation will be between $6 and $10 billion. A expected that a workforce of 80 people Reserve containing hundreds of final investment decision on the project is will be required for site preparation. thousands of engravings. expected in mid 2007.

 Prospect Reasons why WA needs to keep some of its gas supplies

A commitment by Woodside respect to their domestic gas supply Current domestic consumption is Petroleum Ltd to set aside obligations. about 0.3 Tcf a year. If demand does not 15 per cent of the Pluto project’s gas change, the State will require 14 Tcf of reserves for the Western Australian The concept of a domestic gas supply gas over the next 50 years. Under a more realistic 3 per cent growth rate scenario, energy market indicates that commitment is not new. The North West Shelf project, which supplies around aggregate domestic gas demand to 2055 regional petroleum companies are would total 32 Tcf, which is equivalent to warming to the State Government’s two-thirds of WA’s gas requirements, has a domestic gas commitment under around 15 per cent of forecast (ultimate) gas retention policy. recoverable gas reserves of about 200 Tcf. its State Agreement. This facilitated the Woodside has signed agreements establishment of the project back in the Western Australia currently exports with two Japanese companies to supply early 1980s. 11.9 Mt/a or 0.58 Tcf of LNG to various up to 3.75 Mt/a of liquefied natural gas markets around the world. (LNG) for at least 15 years, starting in Western Australian Premier Alan late 2010. Carpenter said the latest arrangement However, the expansion of the North West with respect to Woodside’s Pluto project Shelf project and a number of new LNG However, the company’s recent pledge to proved that the LNG industry could work projects proposed for Western Australia retain a portion of Pluto’s gas reserves could see exports grow to 50 Mt/a by 2015. cooperatively and effectively with the for local consumption is a positive step that will help underpin Western domestic gas industry. Should, over the next few years, the Australia’s long-term energy security. majority of the State’s gas be committed to Western Australia’s gas reserves are long-term contracts for buyers in massive It follows an earlier commitment by conservatively estimated at 120 trillion markets overseas, there are serious partners in the giant Gorgon gas project cubic feet (based on a P50 analysis, or concerns there won’t be enough gas (Chevron, ExxonMobil and Shell) with proven and probable reserves). available to meet future domestic needs.

Holding back: Woodside has given an undertaking to retain 15 per cent of gas from the Pluto project for Western Australia’s domestic market.

 Prospect New glow for Western Australian Kaolin By Prospect Editor John Terrell

The rising middle classes of China The eyes must have it: A Chinese man browses through a periodical at a magazine stand in Beijing, which sells everything from glamour to political magazines. Roughly 88 per cent of China’s 1.2 billion people are literate, and they’ll be demanding and India are demanding an ever a lot more (kaolin coated) glossy magazines in the years ahead. increasing range of up-market WA Koalin has world-class kaolin and ultimately build a full-scale plant goods, including glossy magazines. deposits around Wickepin, 200-250 km with a capacity of 200,000 t/a. southeast of Perth, while the resources This indulgence has sparked a sharp rise controlled by Swan River Kaolin are Its markets are seen to be both Europe in the global demand and price for kaolin, located in the Meckering area. and Asia, supplying filler and coating- a white clay-like mineral which is a key grade kaolin for the high-end paper input for the manufacture of high-quality WA Kaolin acquired its mining leases market, and even higher grade kaolin for coated papers. from CRA in the late 1990s. It is in the the ceramic art and medical sectors. throes of commissioning a $7.5 million Most of the world’s kaolin is presently pilot refinery at Kwinana. The kaolin is It would appear that Western Australia’s sourced from the United Kingdom, USA presently road-freighted to the refinery, advantage lies in the exceptional and Brazil. however, in the longer term it is planned brightness and fine quality of local kaolin, and a significant freight differential over However, the demand for kaolin is to rail the semi-processed kaolin in a competing suppliers. increasing at such a rate that new supply slurry form from Wickepin to Kwinana. opportunities are emerging. Western The Kwinana pilot plant aims to produce Current prices (approximate) Australia, with inferred resources of 222 5000-6000 tonnes of high-grade kaolin of million tonnes of kaolin, is a potential • Small volume parcels of specialist various fractionations and delamination new supply source. grade kaolin for paint and other high (size and shape of particles) for testing in value-added applications — in excess In fact, the State’s southwest wheatbelt is various overseas paper mills. of US$2000 per tonne. literally full of kaolin — enough to coat all WA Kaolin then aims to progress to • High-end gloss paper-grade kaolin the world’s colour magazines, enough to a Stage-1 commercialisation phase — US$200-265 per tonne. replace every plate that the Greeks ever involving the throughput of 250,000 made or smashed, and enough to keep tonnes per year, increasing to 500,000 t/a • Medium-to-low filler-grade kaolin for all the urn makers in Egypt busy for many about two years from now. The company paper and ceramics — US$160-180 generations to come. is negotiating offtake agreements with per tonne. Hundreds of white-walled dams dot buyers in China. For further information see the wheatbelt landscape from Mullewa Swan River Kaolin has been operating a Abeysinghe, P.B. 2002, Bentonite, down to Albany and across to Esperance, kaolin pilot plant at the Avon Industrial attapulgite and common clays in providing unmistakable evidence of Park in Northam since December 2005, Western Australia, Geological Survey kaolin’s ubiquitous presence. achieving some excellent results. The of Western Australia Mineral Resources company wants to upgrade the plant to It is not a question of quantity, just Bulletin 20. 202pp. handle between 30,000 and 50,000 t/a, quality and an effective marketing plan to commercialise any potential kaolin project. The trick is to match the kaolin product with the precise requirements of a buyer. That’s because the people running major paper mills in Japan, Europe and elsewhere are very fussy.

A feature of Western Australia’s wheatbelt kaolin is its exceptional brightness — a few notches above the grade required for high-quality paper. Importantly, from an environmental viewpoint, it requires no chemical bleaching.

At least two Western Australian companies, WA Kaolin and Swan River

Kaolin, are attempting to commercialise A bright outlook: WA Kaolin’s Phil Larson among bags of Wickepin-sourced kaolin at the company’s pilot refinery at their kaolin resources. Kwinana.

 Prospect Low average rainfall in the southern half of Western Australia, plus a rising population and buoyant resources sector, will place increasing pressure on Western Australia’s water resources.

Most authorities agree that urgent, aggressive and multi-lateral action needs to be taken if a sustainable water management future is to be achieved.

Articles in the following feature provide an insight into some of the water-wise initiatives and ongoing challenges for resource companies and authorities in Western Australia. WATER FEATURE

 Prospect Water-wise strategy for Australia’s minerals industry

Water is not only vital for life, it is efficiency in the use of water within the The strategic water management very much a precious commodity industry they represent. framework calls on the Australian for Australia’s $88 billion a year minerals industry to: Currently, about 60 per cent of water resources industry. consumed by the resources sector in • Encourage water, regardless of And as the resources sector continues Australia is non-potable or hypersaline. its quality, to be planned for and to grow, so too will there be a need to In Western Australia, the minerals managed as a valuable business adopt a strategic approach to water industry is responsible for developing and strategic resource; management at mines and mineral about 95 per cent of its water supplies, • Appreciate that access to water must processing sites across the country. which it pays for itself. not be taken for granted; With this in mind, the Ministerial Council That does not mean water should be • Demonstrate and be recognised for on Mineral and Petroleum Resources and wasted. More, it should be regarded as an its responsible water management the Minerals Council of Australia have set asset to benefit business, community and and thereby underpin its social a framework to achieve cooperation and the environment. licence to operate;

• Better understand the unique value of water compared with other commodities, that is, consider water as an asset “on loan” from the community;

• Recognise that water management and use must go beyond simply complying with regulatory requirements or licence conditions as set by State regulatory authorities;

• Better position itself at a corporate and site level by identifying opportunities for more sustainable water uses, improved profitability and minimising risk;

• Actively participate in the wide ranging policy debate on water;

• Engage and form partnerships with stakeholders to also maximise water related opportunities and minimise risk; and

• Continuously improve performance through effective water planning and management.

A copy of the framework can be downloaded from the Minerals Council of Australia website: www.minerals.org.au

Alternatively, further details can be obtained from Mike Balfe at the WA Department of Industry and Resources Water management: Mining companies across Australia have set new goals to be more water-wise, even though most of the water they use is non-potable or hypersaline. on +61 8 9222 0560.

 Prospect Getting serious about climate change

By Wendy Gilchrist, Department of Industry and Resources

Climate change is widely recognised Australian Greenhouse Strategy, the in WA. It is anticipated that expressions as a complex and serious problem Greenhouse and Energy Taskforce was of interest will be sought later this year requiring a multi-faceted response established in 2005 to provide advice from companies wishing to develop from government, industry and the on feasible and practical measures for projects of this nature. community. The Western Australian managing emissions from the stationary energy sector. The final report from this Adaptation to changing climate is also an Government remains committed to taskforce was released in February 2007. important element of the climate change implementing strategies for reducing response, and the State Government is levels of greenhouse gas emissions One area of interest for the resources supporting research to assist in providing that contribute to climate change, sector is natural gas. Western Australia, better information on the extent and as well as adapting to the climate particularly the north-west region, has impacts of climate change for Western changes expected for the State. abundant world-class gas reserves. Australia. For example, the Indian Ocean Natural gas is a cleaner fuel source than Climate Initiative has been providing The Premier announced in November coal and developing these resources valuable research on climate variability in last year that the State Government is will help reduce both domestic and WA since 1998, and studies will continue working on a new climate change action global greenhouse gas emissions in the future. plan, which will include strategies to through international export. A range adapt to climate change and increase of emissions-management options is There are increasing levels of activity in the use of renewable and low emission being implemented or investigated by all sectors of the community, industry technologies. With the establishment of both government and industry sectors. and government to address greenhouse a new portfolio responsibility of Climate An example is the implementation of gas emissions management and the Change in December 2006, the Premier geosequestration in conjunction with impacts of climate change. Into the said: “Climate change is an emerging gas developments to further reduce future, it is likely that climate change environmental, social and economic emissions produced during the gas will increasingly become a factor in issue that now deserves a special focus refining process. decision making and there will be in Government thinking.” further opportunities to build on current The Government also supports research understanding and the actions that are Western Australia is involved in a and development of renewable energy being undertaken. number of climate change-related sources such as solar, wind and initiatives at international, national and geothermal power. Work is progressing State levels. The Western Australian to develop a clear legal framework for Greenhouse Strategy, released by the establishing geothermal energy projects State Government in 2004, details a range of actions currently being implemented to reduce the State’s greenhouse gas emissions. The actions assigned to government agencies are monitored to The winds of change: More renewable and low-emission ensure ongoing progress. In addition to energy such as wind power are being seriously examined as implementing 144 actions in the Western a means of addressing climate change in Western Australia.

10 Prospect Griffin plays key role in reducing Wellington Dam salinity

Collie coal producer Griffin Energy The strategy aims to halve salinity levels has joined the challenge to deliver in Wellington Dam to about 500 ML new water solutions for Western by 2015. This could effectively free-up STERN Australia, and in particular the an extra 70 gigalitres of potable water South West. annually for consumers in Perth and the South West. The company has become involved in WARNING Griffin is also currently investigating the Collie River Salinity Recovery Project, the feasibility of maximising the use Sir Nicholas Stern’s grim report on the which is aimed at lowering salinity levels of the saline water via desalination, Economics of Climate Change caused in the State’s largest reservoir at however this also requires government significant interest when it was released Wellington Dam near Collie. co-support and approval. in October 2006. Over the years Wellington Dam has The central message in his 700-page become increasingly salty, with saline report was that if the global community levels now around 1000 ML, or twice does not take immediate action to the level in the Murray River in South combat global warming, we can expect Australia. This has made the dam water to forego up to 20 per cent of world GDP unsuitable for drinking or agricultural by 2100. irrigation. He also alluded to a world water crisis The plan is to reduce the salinity of that could not be ignored. Wellington Dam water to a potable level, making it a major new water source for Since the release of the Stern Report, Western Australia. debate on climate change has continued on the international level with the Under the umbrella of the National February release of the first volume of Action Plan for Salinity and Water Quality, the Intergovernmental Panel on Climate Griffin has entered into a partnership Change (IPCC) 4th Assessment Report. with the Water Corporation and the WA Department of Water to divert early- According to this report, modelling has season water run off from the east shown that rainfall in the South-West of branch of the Collie River into Griffin’s Western Australia may decrease by up to disused Chicken Creek 4 mine void. About Salty solution — Salt-laden water from the east branch of 20 per cent by 2100 if no action is taken. 4 megalitres of salt-laden water annually the Collie River pours into Griffin Energy’s disused Chicken This and subsequent reports can be has been diverted and disposed of during Creek mine void. Pictured below, Wellington Dam, which could eventually provide 70 gigalitres of potable water for found at www.ipcc.ch. the last two winters. consumers in Perth and the South West.

11 Prospect Kalgoorlie - Boulder Coolgardie

Kambalda

Perth Esperance–Goldfields water Norseman

Esperance 0 100 supply negotiations under way Kilometers

Line of delivery: Unlike the existing Mundaring Weir-to-Kalgoorlie water pipeline, the proposed new Esperance-Goldfields pipeline will be out of sight below the ground over most of its 400 km route. It will be made of either concrete, or steel with a concrete lining. Construction of a seawater capacity of at least 60 megalitres a day UUA is confident the project is the most desalination plant at Esperance with provision to increase this to more cost effective option to provide much and a 400 km pipeline linking the than 100 megalitres a day to satisfy needed additional water to the region. growth in demand. A 400 km pipeline, inland Eastern Goldfields could When negotiations with the State begin in the first quarter of 2008, if with off-takes for customers along its route, will transport water to Kalgoorlie Government are concluded, UUA and United Utilities Australia (UUA) is and beyond. its consortium partners will be able successful in convincing the Western to complete contracts with mines and Australian Government that its plan Mining, industrial, agricultural and other customers and proceed with full is practical, economical and in the residential customers will be supplied engineering feasibility and processes for best interest of the State. by the scheme. planning and environmental approvals.

Late last year the WA Government The Water Corporation currently supplies around 32 megalitres a day to domestic undertook to appoint a third party to Kalgoorlie - Boulder and industrial customers through the oversee negotiations in relation to UUA’s Coolgardie proposal. Those negotiations have existing Goldfields and Agricultural started, and are due to be finalised later Water Supply pipeline from Perth. UUA’s this year. proposal would replace this supply, Kambalda freeing up the water to relieve the UUA is hopeful construction can start increasing pressure on Perth’s own hard early next year, with water flowing to pressed water resources. the goldfields by late 2009. Perth Esperance residents, who face regular In a recent interview on ABC radio, water quality problems from the existing Norseman WA Treasurer Eric Ripper said the supply, would also receive water from government had some sympathy for the the new scheme as would townships project, but any official endorsement of along the pipeline route. In the main, this the scheme would depend on price and will run in parallel to the existing gas risk allocation for taxpayers. pipeline.

The WA Government has asked the The remainder of the new water is largely Proposed water State Solicitor, Tim Sharpe, to assist earmarked for the resources industry pipeline route the negotiation process. including existing gold and nickel mines Esperance plus0 new developments100 currently on the The proposed plant, to be built on land drawing board. A percentage will also be at Esperance port, will have an initial providedKilometers to sustain farming enterprises.

12 Prospect Positive signs as Kwinana industries cooperate to save water

Major water saving: This water reclamation plant at Kwinana has reduced the use of scheme water by six gigalitres per day since its commissioning in 2004.

It’s a case of every drop counts as ensure water requirements were met A number of further regional synergies industries along Western Australia’s based on ‘fit for purpose use’. has also been identified by Kwinana premier industrial strip at Kwinana industry. A current partnership with join in a concerted push to conserve In October 2005 the Kwinana Industries the Centre for Sustainable Resource Council engaged independent one of the area’s most basic Processing is assisting industry in the consultants to undertake a detailed development and implementation of requirements — water. water study to analyse water needs and ongoing water conservation plans for conservation measures over a 15-year Over the years, a cooperative approach the KIA. planning horizon. has seen a lot achieved with local Kwinana Industries Council Director water conservation. For example, the Resulting from this, consultants Tonia Swetman said: “My observation is commissioning of a reclamation plant Burns Roe and Worley confirmed that that industries are prepared to wear a at Kwinana in 2004 has had the effect substantial additional water would cost to be socially responsible, and this of reducing scheme water usage by 6 be required, and recommended it be definitely applies to water conservation gigalitres per year. The plant also treats sourced from: in the Kwinana Industrial Area.” and recycles local industrial waste water, reducing by six million litres per day the • Groundwater from the Jandakot and/ “A high degree of cooperation already amount of treated water that once was or Rockingham areas and Wellard exists among Kwinana industry, and I am discharged into Cockburn Sound. sub-area — 11.6 GL/y at a capital sure this spirit will lead us to sound and and operating cost estimate of $0.23 tangible outcomes with respect to local Now the Kwinana Industries Council – $0.57 kL. water management,” she said. has a vision to take water conservation to even higher levels of efficiency. This • Water Corporation treated wastewater will come in a variety of ways including (low and high quality) — 56 GL/y at reduced scheme water usage and between $0.40/kL to $1.10/kL. increased recovery and the recycling of Kwinana Industry water. The ultimate aim is to give the • Aquifer recharge of South Jandakot Water Consumption Kwinana Industrial Area a close to zero stormwater — 2.2 GL/y at $0.38/kL. reliance on scheme water. (GL/y)

With industrial water consumption Existing industry consumption 2006 32.7 at Kwinana expected to more than Existing industry projected consumption 2021 16.2 double over the next 15 years, from 32.7 gigalitres in 2006 to 69.9 GL in 2021, the New industry projected consumption 20.7 Kwinana Industries Council realised that some serious planning was required to TOTAL (2021) 69.6

13 Prospect CSBP’s Kwinana wetland trial has exciting potential

A pilot nutrient stripping wetland The wetland, made up of typical Swan CSBP ceased daily discharge of effluent at CSBP’s chemical and fertiliser River bulrushes, incorporates a number to Cockburn Sound in October 2005. plant at Kwinana has the potential to of biological processes, all aimed at reducing nitrogen levels in CSBP’s The wetland has been so effective that become one of the largest industrial additional cells are likely to be added, effluent stream. wetlands in Western Australia. with additional effluent coming from the nearby BP refinery. Murdoch University is A one-hectare trial plot, established in Totally self-contained, the wetland currently assisting CSBP with a research 2004 on land leased from BP Refinery returns all treated waste water to and feasibility study into this expansion. (Kwinana) Pty Ltd, is now processing a containment pond before being up to 650 cubic metres of stormwater discharged in accordance with the site’s Quality check: A CSBP environmentalist takes a water environmental protection licence to the sample from a newly created wetland located between and low-strength process effluent the company’s ammonium nitrate plant at Kwinana and on most days. sepia depression ocean-outfall line. BP refinery.

14 Prospect Water recycling award goes to Tiwest

Tiwest, a significant producer of titanium dioxide in Western Australia and the biggest single user of water on the Kwinana industrial strip, has received official recognition for its efforts to conserve and recycle water.

Tiwest was a finalist in two categories of the recent Western Australian Water Awards, and outright winner in Category 6 for recycling initiatives.

The awards are held annually by the WA Water Corporation and Department of Water to promote excellence, innovation and industry participation in water efficiency.

Tiwest implemented a number of efficiencies regarding water recycling, including the:

• Use of recycled pigment contaminated water for wash water;

• Use and recycling of saline wastewaters for slurrying and wash down;

• Commissioning of a counter-current washing process in pigment filtration;

• Re-use of microniser condensate in the pigment filtration phase;

• The installation of a reverse osmosis plant to process bore water into boiler feed water; and Water efficiency: The thoughtful use of recycled water, a small sample of which is held by this Tiwest employee, was part of • The installation of a recovery tank to the reason why the company was a dual finalist in the recent Western Australian Water Awards. exploit further waste recycling and Tiwest has also significantly improved water use was 1.1 gigalitres, down from reuse opportunities. its process water efficiency and lowered a peak of 2.68 GL in 2002. This was despite a 10 per cent increase in Recycled water availability from the its usage of scheme water from the production over this period. Kwinana Water Reclamation Plant has metropolitan water supply. In 2006, been an integral part of Tiwest’s water scheme water usage reached an all Tiwest is now actively pursuing “fit for recycling success, and the company time low of 10.43 kilolitres per tonne purpose” water sources at commercially is seeking to significantly increase its of finished pigment product down from sustainable and competitive rates with a consumption on the basis of proposed an initial production efficiency of 60.67 view to entirely eliminating scheme water expansion plans over the next 24 months. kilolitres per tonne. The total scheme use for processing.

15 Prospect WA water challenges are nothing new

During the goldrush era in the early By 1894, in one of the biggest single water for humans varied from one and 1890s a lack of water forced the movements of people in Australia’s sixpence (15c) to five shillings (50c) per closure of one of Western Australia’s history, a major goldrush was in full gallon. busiest mineral fields. swing. Besides people, more than 600 teams of horses were on the track from There was a heavy toll on life in the fledgling goldfields, and by 1899 the It happened in December 1892, just three Southern Cross to Coolgardie as well as Coolgardie Cemetery (opened in 1894) months after prospectors Bayley and camel teams of 40 to 50 animals. These had 1100 graves. Many died from typhoid Ford put Coolgardie on the map following brought stores, boilers, condensers and other heavy machinery needed to support fever, a complaint induced by poor their discovery of an outcropping gold- sanitary conditions. Many others in studded reef in September 1892. mining and sustain the lives of miners and service providers. outlying parts of the goldfields perished from heat exhaustion and thirst while By December that year, most of the searching for their El Dorado. surface water in gnamma holes and other To help overcome a dire shortage of water on the goldfields, the State catchment areas around Coolgardie had Government approved the enlargement For much of the 11 years between gone. (by contractors) of once remote wells and the discovery of gold at Coolgardie in 1892, and the arrival of scheme water As a result, Yilgarn Mining Warden J.M. soaks. Each site had a caretaker; so valuable was every drop of water. in Kalgoorlie in 1903, the Department Finnerty issued an official instruction of Mines (established on 1 January for miners to lay down their tools and Large water boring and condenser 1894) provided advice on water supplies return to Southern Cross. Men normally plants were subsequently established along tracks leading to the State’s busy forfeited mining claims if they did not around Coolgardie and other places goldfields, along stock routes and for work them, but exemptions were granted on the goldfields to turn super-saline new towns that emerged, both in the owing to a lack of water in the Coolgardie and brackish ground water into a liquid goldfields and developing pastoral area. Most goldfields prospectors obeyed suitable for mineral processing, and also areas. The Department continued to the warden’s instructions. However, for drinking purposes. provide hydrogeological advice until 1996 others on “good gold” who had their own when the group was transferred to the water tanks continued to fossick for the Horses and camels were watered for Water and Rivers Commission, now the precious yellow metal. up to one pound ($2) per head. Drinking Department of Water.

Lapping it up: Prospectors pan-off for gold after a downpour of rain at Coolgardie in 1896. Four years earlier, in December 1892, their predecessors were ordered back to Southern Cross by Warden Finnerty due to a lack of water.

16 Prospect Amazing water rescue — 300 metres underground

Miracle man: Rescued miner Modesto Varischetti in his hospital bed after the Bonnievale mine rescue in 1907.

A century ago, water featured in one Described as “a wise old dog”, Varischetti would survive any attempt of the most remarkable rescue and Hughes was the first to descend the to free him. survival stories in Australia’s rich murky waters of the mine, making an Despite lowering the water level in the mining history. exploratory dive down the mine shaft on the fourth day of the rescue mission mine over the next few days, a thick sludge, plus loose rock and other debris On Tuesday 19 March 1907, a severe (Friday 22 March 1907). still made access very hazardous. rain storm hit the Coolgardie Goldfields Hughes and one of the Fremantle divers, causing a swift stream to develop and Tom Hearn, made several descents On Thursday 28 March, the tenth day an estimated 54 million litres of water on day five, and “witnessed only by of the rescue, the divers returned to pour into a group of mines in the God and ghosts” Hughes first reached underground. Hughes, the only diver Bonnievale area, about 12 km north of the entombed miner, giving him food, to make direct contact with Varischetti Coolgardie. One of the mines was the candles, matches, a pencil and paper, during the rescue mission at that stage, Westralia where 160 men were working plus some slate and chalk. tied a rope around Varischetti’s waist and underground. began the arduous walk through cold, On a later dive, Hughes gave Varischetti a smelly waist-deep water and knee- All but one of the miners scrambled to letter of encouragement from his brother deep sludge. At one stage Varischetti safety, with Italian immigrant Modesto Giovanni. collapsed, and Hughes carried him on his “Charlie” Varischetti (aged 32) being shoulders. Late that afternoon Varischetti trapped nearly 1000 feet (about 300 Pumps worked at a maximum rate to reached the surface to see sunlight for metres) underground and 100 feet below lower the water level in the mine. the first time in 216 hours. He recovered water in the flooded mine. Amid rising concern about Varischetti’s to work underground again, but died of health, some people questioned whether fibrosis at 57. After initially giving him up for dead, a search crew later heard a tapping noise below the water level — a signal that Varischetti was still alive. It was subsequently discerned that he was trapped in an air pocket at the end of an otherwise flooded section of the mine.

The area was described as being a rise that followed the line of an orebody at an angle of about 45 degrees. Luckily, the sudden rush of flood water had pushed up a column of air where Varischetti was trapped, enough for him to survive.

No one had an air hose long enough to reach the entombed miner, so the Western Australian Government ordered two divers to be rushed from Fremantle to the Goldfields in a “Rescue Special” train. They brought with them about 500 kg of diving equipment. The trip took 10 hours, or about two hours faster than the normal Goldfields Express.

However, it was a miner from the South Kalgurli gold mine, Welsh-born Frank Hughes who was chosen to lead the rescue. This was because of his Rescue team: Mines inspector Josiah Crabb, flanked by divers Hearn and Hughes (second from right) and their assistants. Local hero Hughes later received the Department of Mines’ Certificate of Gallantry, plus a purse filled with 100 gold sovereigns, considerable underground mining and an inscribed gold watch, a gold pendant for his wife Martha (the costs coming from a special Daily News Varischetti Fund), plus deep-sea diving experience. a gold medal which was donated by the local Italian community. Hearn received 50 gold sovereigns and a similar gold watch.

17 Prospect Ord stage 2 10 bids to irrigate new farmland

More than three decades ago, the 1963 involved the construction of the The government’s Ord River project team, damming of the Ord River to form Kununurra Diversion Dam, plus irrigation which operates within DoIR’s Office of Lake Argyle gave Western Australia and associated works and development State Development, was surprised to a water catchment area more than of the Kununurra township. It cost about receive as many as 10 submissions. 30 times the size of Sydney Harbour. $20 million, of which the Commonwealth An evaluation panel, bringing expertise In the near future, more water from contributed $12 million. By 1966, 31 farms were drawing water from the from both inside and outside of this precious resource will become diversion dam. government, is now assessing the available under Stage 2 of the Ord submissions. A shortlist of preferred (agricultural) irrigation scheme. Construction of the Ord River dam proponents is expected to be finalised followed to provide a major storage by May. The Department of Industry and reservoir at Lake Argyle at a cost of Resources (DoIR) has received 10 $22 million. This was officially opened It is expected that shortlisted proponents expressions of interest from proponents by Queen Elizabeth in 1972. will be invited to submit a thorough looking to further develop the Ord River project proposal including details on The present Ord Stage 1 development Irrigation Area in the East Kimberley. area comprises about 13,000ha of environmental management, regional development impacts, an Aboriginal The responses, from various private- irrigated farmland on the Ivanhoe and development package relating to the sector interests, involve a range of new Packsaddle Plains with crops including Ord final agreement with the Miriuwung agricultural proposals. sugar cane, chickpeas, hybrid seeds, melons and citrus trees. They produce Gajerrong people, and financing and Between 7000 and 16,000 hectares of between $50 million and $70 million capability statements. new farmland will be developed within worth of crops per year. the Ord Stage 2 (M2 area). Development of the project could begin Ord Stage 2 has been a work-in progress in late 2008 subject to government The original Ord irrigation project in since 1994. approvals and project funding. ORD RIVER IRRIGATION AREA

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18 Prospect Pillara resumes zinc mining

The reopening of the Pillara zinc- lead mine has breathed new life into the highly prospective Lennard Shelf area, in the State’s Kimberley region.

The mine resumed operations in January after being mothballed in 2003 by its previous owner, Western Metals.

New owners Xstrata Zinc and Teck Cominco of Canada have so far outlaid $31 million on underground mine development, plus refurbishment of the operation’s zinc concentrator at Pillara and export facilities at Derby.

They intend operating the plant at a throughput rate of about 1 Mt/a, for a production of between 80,000–90,000 tonnes of zinc in concentrate. That’s about one-third of the plant’s capacity. All systems go: After being in “mothballs” since 2003, the Pillara zinc-lead mine in now back in operation on the Lennard Shelf, east of Derby. The joint venture, operating as Lennard Shelf Pty Ltd, has enough ore in reserve The JV’s spent $5 million on exploration other zinc–lead mines (Cadjebut, Kapok to see the operation last at least another in 2006, and they have earmarked and Goongewa) in the past. 3.5 years. A fly-in, fly-out workforce of another $6 million in 2007 in the hope These mines had been completely worked about 225 from Broome, Derby and Perth has been engaged. of finding new ore bodies. out and are presently reclaimed and environmentally rehabilitated, according to The Lennard Shelf, which roughly An aggressive exploration program could a company spokesman. Latest exploration see the operation extend well into the stretches about 400 km in an east-west efforts are focused on areas on the west next decade, depending on results. direction from Derby, has hosted several side of the Lennard Shelf.

Head West … www.doir.wa.gov.au and discover the difference

“The oil and gas industry is at the beginning “Already some 400 UK oil and gas of a new cycle … and Australian and WA are companies have offices in Perth.” well placed to play an even greater role.” “Business costs are lower here compared “The trend is towards robust economic growth with other countries in this region and of about 14% in the resources sector.” taxation and royalty arrangements in place are internationally competitive.” “There is great interest in asset development and management services, and deep water — Former British Energy Minister and now British High Commissioner, drilling, sub-sea systems.” the Rt Hon Helen Liddell speaking at the AustralAsian Oil & Gas Conference, Perth, February 2007.

19 Prospect Dongas out, village-style accommodation in

Mention the word “donga” to a retired worker from the 1960s iron ore boom and he or she probably won’t sleep tonight.

Code for drop-in sleeping quarters, the donga was the antithesis of the Ritz and a long way from the creature comforts of one’s normal home.

These plain-coloured rectangular boxes, usually featuring a single door, tiny windows and a noisy air conditioner were a basic place to sleep, and that’s about all.

How times have changed. Yesterday’s humble donga has now given way to modular village-style accommodation, many with amenities such as individual Skid row: A four-bedroom donga from an iron ore exploration site in the backblocks of the Pilbara in the 1960s. It was typical of the Spartan-type accommodation provided for exploration crews and some mine workers of that era. ensuites, a kitchen and sometimes a laundry. And the air-conditioners are much quieter than those of the past. regarding the quality of their sleeping leisure centres fitted with computers and quarters, messing services and other modern communications equipment, Indeed fly-in, fly-out mine workers of amenities. Most remote workers’ villages and are usually set in attractive leafy today have few things to complain about have a swimming pool, gymnasium, surroundings.

2007 South West Focus Conference 2 & 3 May 2007 Abbey Beach Resort Busselton – Western Australia

An analysis of the economic growth of the South West Region of Western Australia providing an insight into current trends and future opportunities for business and industry. To find out more or register online go to Find out why economic growth in the South West is five times that of www.swfocusconference.com.au the national economy and what makes the South West one of the most Or contact Motive Conventions buoyant and prosperous areas in Australia. Phone 0408 905 099 Fax 08 9322 1417 Speakers include: Email [email protected] • Nigel Satterley, Chief Executive Satterley Property Group • Jim Brosnan, General Manager Simcoa Operations • Wayne Osborne, Managing Director Alcoa World Alumina Australia • Doug Aberle, Managing Director Western Power • Prof. Jorg Imberger, Director Centre for Water Research UWA • Ross Holt, Chief Executive Officer LandCorp DoIRFEB07_1007

DoIRFEB07_1007-A.indd 1 9/2/07 1:31:04 PM Transportable building industry is thriving

Numerous support industries are gaining from Western Australia’s record-breaking resources sector.

One of the beneficiaries is the transportable building industry, which has achieved spectacular sales over the past three years, now estimated to be worth $350 million a year in Western Australia alone.

WA market leader, Nomad Modular Building Pty Ltd, says its turnover has grown approximately 50 per cent every year for the past three years.

The company, which started out in a modest way from premises in the northern Perth suburb of Malaga in 1990, now turns over $150 million worth of business a year. That’s up from $100 million in 2005 and $60 million in 2004.

It currently operates factories adjacent to the Australian Marine Complex at Henderson and Bibra Lake on the south side of Perth, employing 70 people directly and another 130 contractors indirectly.

It recently acquired McGrath Homes which last year was awarded a 42 four- bedroom, two bathroom house contract for BHP Billiton at Newman. That contract alone was worth $16.2 million, as well as an additional $12 million contract for ecologically-based housing.

All of Nomad’s and McGrath Homes’ products are road freighted to sites throughout the State.

Nomad’s Managing Director, Big business: Good looking village-style accommodation, with all the mod cons inside, has become the norm at fly-in, fly-out Mr Phil Guy, expects the resources mining sites in outback Western Australia. The transportable building industry is now worth about $350 million a year in and tourism industries will continue to Western Australia alone. flourish, and he believes that modularised buildings will play a prominent role in James Rowdon, the Business under consideration in Western Australia, Development Manager for Ausco, said building standards of the future. there certainly appears to be plenty of his company had enjoyed a steady blue sky for the transportable building Another major player in the transportable business growth over the past 10 years, industry well into the future. building market is Ausco, which has been and he envisaged “a whole lot supplying “dongas” and other lightweight of haymaking” over the next few Besides the resources sector, the modular buildings to the WA resources years as well. industry supplies to the tourism, industry for many decades. The company With $80 billion worth of mining and education, retirement, communications previously operated as Atco. petroleum projects either committed or and commercial markets as well.

21 Prospect Burrup air quality as good as Perth suburbs

Sucking in the air: City people on a brisk walk. The air they are breathing is pretty similar to that on the Burrup Peninsula near Karratha. A sample of Burrup rock art is pictured right.

Imagine yourself on a brisk walk, monitoring data represents the first year The Burrup Peninsula is home to a striding out, sucking in the air of of results from a four-year study. large number of Aboriginal petroglyphs your local area. It could be Pegs (rock engravings) which are culturally The purpose of the exercise was to Creek in Karratha, an isolated significant to Australia, and particularly assess whether there might be impacts hillside on the Burrup Peninsula, to the local indigenous communities. The on Aboriginal rock art on the Burrup petroglyphs are of various ages from a or any residential suburb in Perth Peninsula resulting from industrial few hundred to over 10,000 years old. between Wanneroo and Wellard for activity in the area. They provide a glimpse into the life of the that matter. early inhabitants of the area. Using state-of-the-art collection methods You will probably feel invigorated by the and involving some of Australia’s leading The greater part of the Burrup has experience. scientists, the monitoring found no clear long been reserved for the protection measurable changes in rock colour, of environmental and heritage values, The fact of the matter is this: air quality mineralogy or microbial activity. Although as have the neighbouring islands of in all of these places is pretty similar this evaluation has taken place over a the Dampier Archipelago. The smaller and pretty good. It is not corrosive, very short period, the observation is remaining part of the Burrup has, since injurious to one’s health, or damaging consistent with the good air quality that the 1960s, hosted some of the most to cultural artefacts, as is sometimes was measured by the CSIRO scientists, important export industries in the State, claimed. Scientific facts rarely make a which in turn agreed with the results one of Australia’s busiest ports and the good headline, so these facts tend to be gas pipeline that supplies Perth and the forgotten or misconstrued. of earlier work, carried out by the Air Quality Branch of the Department of State’s South West. The boundaries of This is evident from the first year of Environment and Conservation. the Burrup Industrial Estate will not be science-based air quality monitoring on expanded, but it holds the key to some the Burrup Peninsula. The tests were The monitoring included measurements important future developments, including Woodside’s Pluto project. conducted by the CSIRO’s Marine and for concentrations of nitrogen and sulphur oxides, nitric acid and total acid Atmospheric Research group and the The Western Australian Government deposition fluxes. These benchmark organisation’s manufacturing and materials remains committed to the protection and compounds were found to be at relatively technology arm (CMMT). The techniques sustainable development of the Burrup low levels, comparable with those found were also independently verified and Peninsula and will protect the important in the suburbs of Perth. endorsed by internationally recognised heritage of the area while ensuring that experts from the US and Europe. The results also showed, as expected, industry continues to prosper. that the amount of dust (PM10) in the Commissioned by the Department of To ensure that any change resulting from air on the Burrup was much higher than Industry and Resources and coordinated new industry is taken into account, the by the Burrup Rock Art Monitoring in the suburbs of Perth, especially near monitoring work is ongoing. Management Committee (chaired by industry. The background levels of dust Associate Professor Frank Murray from present in the Pilbara are much higher For more details, the report can be Murdoch University), the air monitoring than those in Perth because the Pilbara accessed via DoIR’s website: was undertaken between August is naturally a dusty place, with or without www.doir.wa.gov.au/burruprockart/ 2004 and September 2005. This initial industry, the scientists noted. monitoringresults

22 Prospect Strict environmental conditions set for the proposed Gorgon project

Some of the most stringent shell. The shell of a flatback turtle is the Gorgon project now needs to be environmental conditions ever wide with turned-up edges, covered by a translated into formal environmental imposed on a resource project in thin fleshy skin, and measures up to one approval from both the State and Western Australia will apply to the metre long at adulthood. The colour is federal governments. Beyond this, the development of the multi-billion usually yellow-grey or olive grey, with the project needs to complete its front-end underside a pale yellow. A middleweight engineering and design (FEED) process, dollar Gorgon gas project as far as turtles go, the flatback weighs gain other government approvals such at Barrow Island. up to 90 kilograms. as development approval, and secure Among them is a commitment to final investment approval by each of the They are unique in many ways including participants for the project to proceed. protect and increase populations of the their choice of habitat. They prefer endangered flatback turtle. inshore waters and bays where they can Ultimately, it is expected that the project A species with a “vulnerable” feed in shallow water around a soft- will generate about $2.5 billion a year in conservation status, the flatback turtle bottomed seabed. They feed mostly export revenue; and create 6000 direct finds comfort in the warm waters across on soft-bodied prey such as sea and indirect new jobs. Australia’s northern coastline, including cucumbers, soft corals, jellyfish, molluscs and prawns. Chevron and its partners have so far Barrow Island, about 130 km west of outlaid more than $1 billion on the Dampier. The species lays about 50 eggs (on land) project and are currently spending at a Project proponents Chevron and its per nest, the fewest of any marine turtle. rate of about $1 million per day. joint venture participants have pledged Their biggest enemy, at least in eastern $60 million above and beyond earlier Australia, and especially on the beaches environmental undertakings for what is of Cape York Peninsula, are feral pigs shaping up to be Australia’s biggest-ever which can easily sniff-out buried eggs resource development project. and attack hatchlings. Foxes are also a problem on many mainland Pilbara More than half this money ($32.5 million) beaches. will be spent on work associated with the welfare of the flatback turtle in the While there are millions of foxes and State’s northwest. feral pigs roaming various parts of outback Australia, Barrow Island and The commitment adds to a 2003 pledge other northwest islands off the northwest to deliver $40 million worth of coast of Western Australia are free of conservation projects to protect native these pests. However, the habitats of the plants and animals in environments flatback turtle are nevertheless fragile. similar to Barrow Island. Other environmental conditions Allied to this, the Western Australia associated with the Gorgon project Government aims to expand land and relate to dredging, robust quarantine marine parks in the Pilbara and West management including the continued Kimberleys to protect turtles and improve exclusion of all non-indigenous species, management of the existing Montebello/ the protection of subterranean fauna, Barrow Island conservation reserves. strict controls on greenhouse gas emissions and compliance reporting. The program includes island management and the translocation The environmental assessment of the of three other threatened species Gorgon project is the result of more — the spectacled hare-wallaby, golden than three years’ study, and includes the bandicoot and black-and-white fairy research and contributions of more than wren. 100 independent experts and extensive community consultation. Through this process, the project has refined a number Flatback turtle — Natator depressus of development designs, allowing equal Flatback turtles can be found in most or better environmental outcomes. northern parts of Australia, as far south as the Tropic of Capricorn, as well as What next? Flat strap: Consultant environmental scientists strap a in Indonesia and Papua New Guinea. The conditional environmental approval satellite transmitter to a flatback turtle during a night exercise on Barrow Island. They found that the turtles can They differ from other turtles, which obtained from the Western Australian migrate more than 1000 km from their nesting place on are characterised by their high domed Minister for the Environment for Barrow Island to foraging grounds in the northern Kimberley. 23 Prospect THE BIG PICTURE Economic trends

12

World economic review and outlook US economy 10 The world economy built on strong growth After a relatively slow growth phase in the

in 2005 and 2004, notching up 5 per cent in year to September quarter 2006 (2.0 per e 8 2006. In contrast to past expansion phases, cent), the December quarter growth figure a prominent feature has been the increasing was surprisingly strong (3.5 per cent). Mainly 6 contribution to world economic growth from driven by exports, personal and federal, state

developing countries such as China and India. and local government spending, the strong Chang entage According to the ANZ (2007), developing quarterly result ensured that the US recorded rc 4 Pe countries contributed about 62 per cent of a 3.4 per cent growth for 2006. the rise in global growth over the last 5 years, 2 compared with only 46 per cent over the last Despite the fifth consecutive quarter decline 20 years. in housing investment, consumer spending and confidence remained relatively strong. 0 2000 2001 2002 2003 2004 2005 2006*2007* As well as adding to net world economic According to the Conference Board, the US India growth, developing countries have “exported” consumer confidence index increased slightly China United States in January, consolidating the December Gross Domestic Product Source: IMF (Sept 2006) low inflation by providing lower costs of Note: *estimates production of goods and, increasingly, results. The rise, which is mainly due to a services. Indeed, it is likely that this more favourable employment market, implies 6 deflationary effect has helped to offset the that private consumption will continue to be the main driver of economic activity in impact of large increases in oil prices over the 5 last two years. Now with oil prices trending coming months (The Conference Board 2007). In turn, the improvement in consumer down by approximately 27 per cent since the 4 confidence suggests that the risks of a July 2006 peak (of an average monthly price housing-led recession in the US with possible of US$74) the short-term outlook for global 3 impacts in other countries have reduced. inflations is increasingly benign. Consequently, influential commentators 2 entage Change entage

Looking ahead, the global economic expect the US economy to slow modestly rc

Pe 1 prospects for 2007 are for slowing growth, in 2007, largely in response to the lagged with 2007 economic growth forecast at impact of tightened monetary policy since 0 about 4.5 per cent. In examining the likely June 2004. Their forecasts range from 2.2 per cent (The Economist 2007) to 2.6 per cent (The sources of continued growth, it is apparent -1 that the US and China remain the key Conference Board 2007). economies to monitor. Inflationary pressures -2 Despite subduing inflationary pressures 2000 2001 2002 2003 2004 2005 2006*2007* stemming from tight labour markets in some over the past year, the Federal Reserve has countries (e.g. US and Australia), relatively China India United States maintained its official interest rate at 5.25 per Inflation Rate Source: IMF (Sept 2006) Note: *estimates high commodity prices and the threat of cent in January. The US Federal Reserve has a disorderly adjustment of global current lingering concern that underlying inflationary account imbalances remain the main risk pressure remains, particularly due to a tight 8 factors to these countries and the world. labour market. Other risks include falling However, increasing flows of speculative productivity growth and the large trade and 6 capital is also a factor, with investors willing current account deficits (the twin deficits). to take greater risks. Moreover, as progress 4 P in the current Doha Round of the multilateral In addition to the immediate risk to inflation, trade negotiations stalls, the increasing threat other economic commentators have 2 of protectionism adds another risk to global expressed concerns that continued labour 0

economic growth (Department of Foreign market tightness could reduce US long-term GD of entage

Affairs 2007). potential growth rate. The main concern is rc

Pe -2

-4

-6

-8 2000 2001 2002 2003 2004 2005 2006*2007*

China India United States

Current Account Balance Source: IMF (Sept 2006) Note: *estimates

24 25 Prospect Prospect falling labour productivity, which is the key main long-term risk to the Chinese economy is (roads, education, drinking water etc) in an to sustaining long-run economic growth. The continued reliance on investment and exports environment where the high government debt issue is whether recent declines in labour as sources of economic growth, which can to GDP ratio means that interest payments productivity are signalling a return to the create weakness in terms of overcapacity absorb about a third of general government stagflation of the 1970s. In examining the and bad debt. However, these risks are being revenue. matter, the Federal Reserve Bank of New York, offset by increasing domestic consumption. reported in its November 2006 issue of Current Partial indicators show that China is on Issues in Economics and Finance, that the course to becoming a consumer society. For Europe slowdown in labour productivity is a temporary example, China is the world’s largest and As growth in the major European economies phenomenon. Indeed, model results reveal fastest growing mobile phone market and improves, persistent appreciation of the euro that trend (long-run) productivity growth the second largest automobile market (Far against the US dollar has sparked speculation remains strong at nearly 3 per cent. Eastern Economic Review 2007 and Australian in some quarters that Asian central banks may Financial Review 12 January 2007). Growth in rebalance their foreign exchange portfolios China consumption should help diversify the sources in favour of the euro. In addition, according of Chinese prosperity. to Bloomberg (December 6, 2006), Iran plans In 2006, the Chinese economy grew by 10.7 per to reduce its use of the U.S. dollar in world cent, with upward revisions for the first three trade in favour of the euro. While speculative quarterly growth figures. This acceleration Japan and India in growth comes in spite of a number of The latest GDP data for Japan show that capital flows may have some influence in the measures to slow economic activity, including it expanded by 1.6 per cent in the year to short-term, it is likely that over the longer- increases in official interest rates and bank September quarter 2006. Growth continues term, continued appreciation in the euro- reserve requirements as well as tightening to be led mainly by expansion in exports dollar exchange rate will be driven largely of land sale and project approvals in certain and business investment with domestic by the diminishing differential in economic industries to reduce investment. Exports demand-led growth flagging. In fact, private growth between the euro area and the US and fixed assets investment continued to consumption fell by 0.1 per cent over the same as well as the shrinking yield differentials in expand strongly in 2006. Investment grew by period (Japan Cabinet Office 2007). The main their respective money markets. The main 24 per cent, down slightly from the previous risk to Japan’s economic recovery continues impacts of this are improvement in US export year. Exports were up by 27 per cent, which to be the slower pick-up in consumption competitiveness relative to the euro area and generated a record trade surplus of compared to business activity. However, capital flow toward the euro area in search of $177.5 billion US dollars (National Bureau of consumption is expected to rise over time as higher yields. Statistics of China 2007 and www.abcmoney. increasing employment engenders consumer co.uk). confidence (CNBC.com 2007). In Germany, the euro area’s largest economy, GDP expanded by 2.5 per cent in 2006 which China has now experienced its fourth In the year to September quarter 2006, India equates to 2.7 per cent when an adjustment consecutive year of double-digit economic grew strongly by 9.2 per cent, up slightly is made for the number of working days. The growth, with some commentators stating that from 8.9 per cent in the year to June quarter. main contributor to this result, which is the the country is on course to replace Germany as Manufacturing and services continued to strongest growth since 2000, was investment the world’s third largest economy as early as drive the economy. Signs of overheating in the in machinery and equipment as well as robust 2008. Despite strong economic activity, China’s Indian economy are beginning to show. The construction activity (Federal Statistical Office inflation rate increased by 2.8 per cent in the inflation rate has risen up to 7 per cent and Germany 2007). France grew by 1.9 per cent year to December 2006, up from 1.9 per cent in India’s current account deficit is widening as in the year to September quarter 2006, down November. Currently, it is unclear whether the domestic output struggles to keep up with from 2.6 per cent in the year to June quarter rise represents a higher underlying trend or rising demand. due to short‑term factors such as increasing (Insee Quarterly National Accounts 2007). food prices (www.abcmoney.co.uk). Slowing the economy to a more sustainable In contrast, the UK economy (which is not a pace without inducing a hard landing will be member of the euro area) expanded by 0.8 per Nonetheless, the strong economic momentum a tricky prospect for Indian authorities. High cent in the fourth quarter of 2006, up slightly will continue into 2007, with the Economist growth is required to sustain the decade- from the previous quarter (National Statistics forecasting GDP growth of 9.5 per cent. The long infrastructure improvement program United Kingdom 2007).

24 25 Prospect Prospect THE BIG PICTURE Commodities Outlook

Resource prices tend to be volatile at the best Index Iron Ore US$/t of times and these are certainly the best of 240 9,000 times for resource prices. When it comes to In stark contrast to the iron ore price negotiations for 2006-07 which were 220 Australian producers, however, the Australian 8,000 dollar exchange rate against the US dollar can concluded relatively late in June (prices are effective from the 1 April each year), the 200 be as influential as any US dollar-based price 7,000 changes. In that respect the Reserve Bank of current round got off to a particularly early 180 start on December 21. On that day CVRD 6,000 Australia non-rural commodity price index is 160 useful to put prices into a local perspective. settled with China’s largest steel producer, 5,000 Baosteel Group Corp, for a 9.5 per cent price 140 The RBA non-rural commodity price index increase for iron ore fines. 120 4,000 shows the monthly change in prices for a This is doubly significant because it represents selected basket of resource commodities 100 3,000 expressed in US dollars, Australian dollars the first time the Chinese steelmakers have and Special Drawing Rights (SDR’s). The key led the price settlements. After a failed 80 2,000 attempt to set prices in 2006, Baosteel took point to note is while the US dollar based 60 index has marched steadily upwards in the lead role in negotiations in reaching the 1,000 Jul-02 Jul-03 Jul-04 Jul-05 Oct-02 Oct-03 Oct-04 Oct-05 b-03 b-04 b-05 b-06 b-07 Apr-02 Apr-03 Apr-04 Apr-05 the last few years, the index expressed in agreement with CVRD. The Brazilian iron ore Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 Australian dollars has stagnated since the producer subsequently reached settlements A$ SDR US$ May-03 May-04 May-05 May-06 2001-02=100 with several other major steel producers. Non-Rural Commodity Price Index Source: LME Cash Official middle of 2006. While commodity prices were Source: Reserve Bank of Australia Copper Prices on the rise in US dollar terms, the Australian Rio Tinto and BHP Billiton followed suit with dollar was also gaining ground against the the same price increase for lump ore with US$/bbl (WTI) US$/t US dollar thereby negating much of the gains Baosteel. 80.00 3,500 when expressed in local currency terms. Encouraged by sustained high iron ore 70.00 Crude Oil prices, new projects and expansions abound 3,000 From peak prices back in July 2006 crude oil in Australia and Brazil. Several projects in has been in decline for a number of reasons. Western Australia represent joint ventures 60.00 From close to US$80 per barrel the West between local mining companies and Chinese 2,500 customers or construction groups. Examples Texas Intermediate (WTI) price has dropped 50.00 to almost US$50 per barrel in mid January include the Midwest and Murchison ventures 2,000 2007. The recent small rebound to near US$60 to develop Jack Hills and Weld Range 40.00 per barrel reflects the sudden cold weather deposits. Gindalbie Metals is also involved in a 50:50 joint venture with Anshan Steel experienced in an otherwise unusually warm 1,500 northern American winter. At around $54.5 30.00 per barrel the average price for January 2007 Gold represents the lowest monthly price for more After hitting a low of US$560.75 per ounce in 20.00 1,000 3 4 5 6 than a year. October 2006 gold prices marched upwards to 3 4 5 6 b-03 b-04 b-05 b-06 b-07 b-03 b-04 b-05 b-06 b-07 Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 Fe Fe Fe Fe Fe May-0 May-0 May-0 May-0

the US$660 mark by early February. From an Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 May-0 May-0 May-0 May-0 Weather was a major factor in pushing crude average price around US$604 in 2006 ABARE oil and natural gas prices downwards in the forecasts a strengthening in 2007 to US$670 Oil Prices Source: EIA (Official Energy Statistics from the US Government) Aluminium Prices Source: LME Cash Official December–January period. Most countries per ounce. This was spurred by two factors, in the northern hemisphere had experienced namely the speculation that China’s central US$/oz US$/t a relatively warm winter, reducing the bank may increase gold holdings, and the 750 demand for heating fuels. In addition crude investment demand as a hedge against the 45,000 oil production appears to have caught up weakening US dollar. 700 40,000 with consumption, easing the tightness of 650 the market and inventories are recovering. Continued geopolitical uncertainty, weakness 35,000 The Australian Bureau of Agricultural and in the US dollar and a resurgence of 600 Resource Economics (ABARE) noted a slowing fabrication demand are seen as the main 30,000 in the growth of world oil consumption from factors driving gold prices upwards in 2007. 550 25,000 1.4 per cent in 2005 to 1.1 per cent in 2006. After a slight decline in 2006, gold mine 500 production is likely to increase modestly in 20,000 The US Energy Information Administration Australia, the US and Latin America. South 450 (EIA) has adjusted its forecast price for crude African production remains in decline with 400 15,000 oil in light of the current market situation. mines having shed a further seven per cent The EIA now projects that the average crude oil in output in 2006 after a 15 per cent decline 350 10,000 price for 2007 will be US$59.5 per barrel, down in 2005. 300 5,000

from their former projections around US$65 per 3 4 5 6 3 4 5 6

barrel. ABARE is somewhat more conservative, Australian gold output is expected to show b-03 b-04 b-05 b-06 b-07 b-03 b-04 b-05 b-06 b-07 Fe Fe Fe Fe Fe Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 Aug-03 Aug-04 Aug-05 Aug-06 forecasting an average WTI price of US$56 a substantial increase in 2007 as new May-0 May-0 May-0 May-0 May-0 May-0 May-0 May-0

per barrel. operations which commenced late in 2006 Gold Prices Source: London PM Fix Nickel Prices Source: LME Cash Official 26 27 Prospect Prospect Index US$/t expand to design capacity. In addition, a Despite increases in aluminium production 240 number of operations are set to start up in in 2006, rapid escalation in alumina 9,000 the near future including Crescent Gold’s production has depressed its market. ABARE 220 8,000 Laverton mine (90,000 ounces per year), View estimated that alumina production in China 200 Resources Bronzewing mine (120,000 ounces had increased over 50 per cent in the first 7,000 per year) and Exco Resources White Dam ten months of 2006 to 10.7 million tonnes. 180 mine (115,000 ounces over three years). This massive increase in alumina supply 6,000 has depressed the market despite growing 160 Copper 5,000 aluminium production such that alumina 140 After a dramatic decline in prices in the prices dropped from a high of US$650 120 4,000 second half of 2006, copper seems to have per tonne at the start of 2006, to a low of stabilised slightly above the US$5000 per US$200 per tonne in November 2006. ABARE 100 3,000 tonne mark in the beginning of February. forecasts the average alumina price in 2007 This price level still represents a slight to be US$213 per tonne, down 51 per cent 80 2,000 premium over prices experienced prior to from the 2006 average of US$433 per tonne. 60 the headiness of the latter half of 2006. Since 1,000 hitting a low of 90,000 tonnes in July 2006, Nickel Jul-02 Jul-03 Jul-04 Jul-05 Oct-02 Oct-03 Oct-04 Oct-05 b-03 b-04 b-05 b-06 b-07 Apr-02 Apr-03 Apr-04 Apr-05 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 LME copper stocks have steadily increased to Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 A$ SDR US$ May-03 May-04 May-05 May-06 Despite recovering somewhat from October more than 200,000 tonnes in late February. At 2001-02=100 to December 2006 LME nickel inventory Non-Rural Commodity Price Index Copper Prices Source: LME Cash Official Source: Reserve Bank of Australia this level they still only represent four days of stocks have dropped off again to under world consumption but these tonnages are on two days of world consumption. This is an US$/bbl (WTI) US$/t a par with historic levels. indicator of the tightness of the nickel market 80.00 3,500 which continues to be sensitive to supply Substantial expansions of copper mining, disruptions. Disruptions throughout 2006 smelting and refining capacity are set to 70.00 in Australia, Canada and Indonesia have 3,000 come on stream in 2007 putting downward bolstered nickel prices, with the latest being pressure on copper prices. Major projects 60.00 expected to come into production are Phelps a general strike in New Caledonia which 2,500 Dodge’s Cerro Verde mine expansion in produces 8 per cent of world mine production. Peru and BHP Billiton’s Spence project in 50.00 These pressures have made nickel the most Chile. BHP Billiton will experience further robust of the metal commodities, rising 2,000 production expansion through the continued 40.00 from a price of US$19,000 per tonne in mid ramp up of their sulphide leach project at June 2006 to early 2007 highs of around 1,500 Escondida in Chile. 30.00 US$40,000 per tonne. The continued price ABARE predicts copper consumption growth strength prompted ABARE to increase their annual average price forecast in December to 20.00 1,000 to remain strong in 2007 driven by Chinese 3 4 5 6 3 4 5 6 demand. This is off-setting the softening US$24,000 per tonne for 2007. b-03 b-04 b-05 b-06 b-07 b-03 b-04 b-05 b-06 b-07 Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 Fe Fe Fe Fe Fe May-0 May-0 May-0 May-0 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 demand in the US due to a slowing in the May-0 May-0 May-0 May-0 construction industry. Taking these factors In January 2007 the International Iron and Oil Prices Source: EIA (Official Energy Statistics from the US Government) Aluminium Prices Source: LME Cash Official into account ABARE predicts the average Steel Institute released data showing that 2007 price to be US$6250 per tonne. crude steel production reached the record level of 1,239.5 million metric tonnes, an US$/oz US$/t Aluminium increase of 8.8 per cent over 2005. China 750 45,000 After peaking at US$3275 per tonne in May accounted for approximately 60 per cent of the increased production, and all of the 700 40,000 2006, aluminium prices dropped sharply to US$2400 per tonne before starting a gradual top ten producers showed an increase 650 35,000 march towards the $2800 per tonne mark. except Brazil. ABARE estimated that nickel 600 So far, the 2007 price trend appears to be a consumption increased 8 per cent to 1.34 30,000 continuation of the one set in the latter half million tonnes 550 of 2005. Strong demand in China coupled with in 2006, and forecast a further 3 per cent 25,000 rise in 2007. 500 declining world stocks has supported the 20,000 recent price strength. 450 China is reported to have overtaken Japan ABARE predicts the demand growth to as the world’s largest producer of stainless 400 15,000 continue in 2007, driven largely by China, steel, the product which accounts for two 350 10,000 which is spurred on by strong performance thirds of world nickel consumption. Nickel in the construction and automotive sectors. substitution in stainless steels is still evident, 5,000 300 but this is balanced by disruptions in supply. 3 4 5 6 3 4 5 6 Conversely the situation in the US has shown b-03 b-04 b-05 b-06 b-07 b-03 b-04 b-05 b-06 b-07 exactly the opposite trend, with consumption As such it remains a commodity on a knife Fe Fe Fe Fe Fe Fe Fe Fe Fe Fe Nov-03 Nov-04 Nov-05 Nov-06 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 Aug-03 Aug-04 Aug-05 Aug-06 May-0 May-0 May-0 May-0 May-0 May-0 May-0 May-0 weakening because of poor performance in edge, with analysts neither discounting the

Gold Prices Source: London PM Fix Nickel Prices Source: LME Cash Official the same sectors. possibility of a price rise nor plummet. 26 27 Prospect Prospect Commissioned Projects Committed Projects (as at 13/2/2007) (for financial year 2006/2007)

Copper Coal to develop a mining operation based on the ex-BHP Koolan Island iron ore deposits in Yampi Sound, Nifty (Throssell Range) - Nifty Copper Operation Collie - Coal Mine (Ewington I) 130 km north of Derby. Mt Gibson aims to produce - Underground Mine THE GRIFFIN COAL MINING COMPANY PTY LIMITED premium grade iron ore at a production rate of BIRLA (NIFTY) PTY LTD Griffin Coal plans to develop its Ewington I approximately 4 Mt/a over 9-10 years, with the Birla has recently completed its expansion of the deposit, approximately 2 km east of Collie, which possibility of an extended mine life dependent on the Nifty Copper Operation in the East Pilbara to include has estimated recoverable reserves of 75 Mt. identification of additional resources. It is anticipated an underground mining operation from the base Environmental approval has been given, subject to that the first ore shipment will occur Q2 2007. of the existing open cut. The underground mine acceptance of a final environmental management Expenditure: $147m. will have an annual throughput of 2.5 Mt with an plan. The mine will produce about 2 Mt/a coal for Employment: Construction: 130; Operation: 220 extension to the life of mine of 10-12 years. private sector customers, including Griffin Energy’s nearby Bluewaters 1 power station, presently under Expenditure: $200m. construction. Mid West Region - Koolanooka/Blue Hills Hematite Employment: Construction: 160; Operation: 90 Expenditure: $20m. Iron Ore Mine MIDWEST CORPORATION LIMITED Iron Ore Diamonds Midwest Corporation commenced transporting the iron ore fines stockpiles at Koolanooka, about 160 km Jack Hills - Jack Hills Hematite Mine Stage 1 Argyle - Underground Diamond Mine MURCHISON METALS LIMITED south-east of Geraldton, early in January 2006 and ARGYLE DIAMOND MINES PTY LIMITED the first export shipment occurred in late February Murchison Metals commenced operation of a 1.5 Mt/a Argyle Diamonds has committed to an underground 2006. Midwest further proposes to re-open the direct shipping hematite iron ore mine in December mine at Argyle after a $100 million feasibility study 2006. The ore is currently trucked to the port of Koolanooka and Blue Hills hematite iron ore mines was completed in late 2005. Argyle is progressing the at a rate of 1-2 Mt/a, commencing in Q4 2007. The Geraldton for export and first shipment occurred 1 main decline and full production for the first stage, February 2007. The company anticipates increasing involving 7-8 Mt/a ore extraction, is expected to be re-opening of the mines is being environmentally production to 2 Mt/a in 2008, before proceeding to reached in 2011, with average production of about assessed at a Public Environmental Review level. Stage 2 in 2010. 17 Mcts/a of diamonds until 2018. A second stage Expenditure: $26.4m. Expenditure: $41m. project will extend mine life to 2024. Employment: Construction: 40; Operation: 60 Employment: Construction: 30; Operation: 90 Expenditure: $1.2b. Employment: Construction: 250; Operation: 500 Pilbara - Dampier Port Expansion Oil & Gas Developments HAMERSLEY IRON PTY LIMITED Electricity Hamersley Iron is currently expanding the capacity Enfield (Carnarvon Offshore Basin) - Oil Field of its port facilities at Dampier Port from 120 Mt/a to Collie - Bluewaters Coal-Fired Power Station WOODSIDE ENERGY LTD 145 Mt/a. This work includes installation of a new car The Enfield oil field, located 50 km north-west of GRIFFIN ENERGY dumper, screen house and related facilities. Exmouth, started production in July 2006. Oil is Griffin Energy has commenced construction of the Expenditure: $920m. produced via five subsea wellheads connected by first of two 208 MW coal-fired power stations at the flowlines to a disconnectable, double-hull FPSO proposed Coolangatta industrial estate, 10 km north- Employment: Construction: 800; Operation: 200 vessel. The Nganhurra FPSO has a maximum design east of Collie. Commissioning of Bluewaters 1 Base production rate of about 100,000 bbl/d and a storage Load Power Station is expected by late 2008. Pilbara - Rapid Growth Project 3 capacity of about 900,000 barrels of oil. The facilities Expenditure: $400m. BHP BILLITON IRON ORE PTY LTD are designed to operate for 20 years. Enfield has Employment: Construction: 600; Operation: 50 In October 2005, BHP Billiton announced Board estimated oil reserves of about 127 million barrels. approval for the US$1.5 billion Rapid Growth Project Expenditure: $1.48b. Gold 3 (“RGP3”) expansion, which will increase capacity Employment: Construction: 100; Operation: 80 of its Pilbara iron ore operations to 129 Mt/a. The Boddington - Gold Mine (Wandoo Expansion) key elements of RGP3 comprise the expansion of Zinc/Lead BGM MANAGEMENT COMPANY PTY LTD the Area C mine by 20 Mt/a, additional sidings on the BGM Management Company Pty Ltd, on behalf of Newman railway, and port works at Nelson Point Lennard Shelf (Pillara) - (Plant Expansion) Zinc/ Newmont and AngloGold Ashanti, is developing and Finucane Island. Initial production is forecast to Lead Mine the $2 billion Wandoo project, based on mining begin in Q4 2007, with actual production of 129 Mt/a TECK COMINCO the extensive bedrock resource that underlies the anticipated by 2008/09. mined-out oxide resource. Production will be up to The previously mothballed Pillara mine and Expenditure: $2b. concentrator has been recommissioned. Annual 600,000 oz/a of gold and about 20,000 t/a copper production is estimated to be 80-90,000 tonnes of in concentrates over a 15-year mine life. Initial Employment: Construction: 900; Operation: 150 zinc in concentrate during a mine life of four to five production is expected by late 2008. The Wandoo years. Full production is anticipated by the end of project will result in significant growth in and around Nickel Q1 2007. the rural community of Boddington 120 km south- east of Perth. Expenditure: $31m. Ravensthorpe - Lateritic Nickel Mine and Hydro- Expenditure: $2b. Employment: Operation: 225 metallurgical Processing Plant Employment: Construction: 1000; Operation: 650 BHP BILLITON - RAVENSTHORPE NICKEL Heavy Mineral Sands OPERATIONS PTY LTD On 23 March 2004, BHP Billiton approved the Ammonium Nitrate Waroona - Heavy Mineral Sands Mine development of the Ravensthorpe Nickel Project ILUKA RESOURCES LIMITED that will produce up to 220,000 t/a of mixed nickel/ Kwinana - Ammonium Nitrate Plant & Expansions luka approved the development of its Waroona cobalt hydroxide, to be processed at BHP Billiton’s CSBP CHEMICALS mineral sands mining operation in March 2006. Yabulu refinery in Queensland. Plant construction CSBP Limited has environmental approval to double Located approximately 120 km south of Perth, the is underway and the first shipment of product of the capacity of its existing ammonium nitrate facility Waroona mine will supply feedstock into Iluka’s hydroxide from Ravensthorpe is expected in mid 2007 at its Kwinana operations. Construction is well Capel operations. Construction has commenced with full production from the second half of 2008. advanced on the ammonium niitrate plant and the and production is expected to start by Q2 2007. The prill plant. With workforce of over 200 onsite, the deposit contains a proven reserve of 8.4 Mt of ore at a Expenditure: $1.8b. objective is to achieve commissioning in the second heavy mineral grade of 10.2%. Waroona is estimated Employment: Construction: 2000; Operation: 380 half 2007. to have a three-year life. Expenditure: $200m. Expenditure: $39m. Oil & Gas Developments Employment: Operation: 60 Char Angel (Carnarvon Offshore Basin) - Gas and Iron Ore Condensate Field Collie - Char Plant (Coal) WOODSIDE ENERGY LTD Hope Downs - Iron Ore Mine WESFARMERS PREMIER COAL The Angel gas and condensate field, operated by At its Premier coal mine near Collie, Wesfarmers HOPE DOWNS LIMITED Woodside as part of the North West Shelf Venture Energy is in the process of commissioning a Development proposals were approved by the (“NWSV”), includes the NWSV’s third fixed production demonstration scale char plant with a target government on 31 March 2006. Hope Downs Iron Ore platform, which will be remotely operated, three production capacity at full operation of 50,000 t/a. The assigned a 50% interest in the project to Hamersley plant will provide sufficient volume to allow potential Iron. Construction work has commenced. subsea production wells and a 50 km subsea pipeline which will link the new platform to the existing North customers to fully assess the product. Char has Expenditure: $1.5b. Rankin production facility. Angel is expected to be applications in steelmaking, ferro-alloy production, Employment: Construction: 1000; Operation: 300 mineral sands processing, smelting and some fully operational by Q4 2008. The platform will be chemical plant processes. Kimberley - Koolan Island Iron Ore Mine capable of processing 800 million standard cubic feet Expenditure: $8m. MOUNT GIBSON IRON LIMITED (AZTEC RESOURCES) of gas a day and 50,000 bbl/d of condensate. Employment: Operation: 10 Construction activities and mining has commenced Expenditure: $1.6b.

28 29 Prospect Prospect Projects Under Consideration (as at 13/2/2007)

North West Shelf - Project Expansion - 5th LNG Train Agriculture Gold WOODSIDE ENERGY LTD Ord River Irrigation Scheme (Stage 2 Development) Kalgoorlie - Super Pit - Golden Pike Cutback A final investment decision for the 4.4 Mt/a Train 5 - Mantinea Flats expansion, with an associated second LNG loading jetty KALGOORLIE CONSOLIDATED GOLD MINES PTY LTD The conceptual project consists of developing and and extra processing facility support, was announced in KCGM is planning to extend the life of its open-cut servicing approximately 80 farms (about 4200 mine by five years to 2017, with the Golden Pike June 2005. Site work started in Q3 2005. ha total) at Mantinea Flats for irrigated intensive Cutback. This involves the mine pit edge moving The project is expected to take about three years to horticulture which will then be offered for sale. closer to residential areas of the town. Additional complete, with commissioning due to start around Ord River - Ord River Irrigation Scheme tailings storage facilities and waste rock dumps will mid-2008 and first LNG export cargoes planned for ORD STAGE 2 M2 AREA also be required. KCGM has responded to a range Q4 2008. The potential exists for a 30,000 ha irrigated of issues raised during the public review period of its Public Environmental Review. Environmental Expenditure: $2.425b. agricultural development immediately to the north- east of the existing Ord Stage 1 development in approval is expected by mid-2007. Employment: Construction: 1500; Operation: 20 the far north of Western Australia. Environmental Employment: Operation: 1043 approval has been given for an irrigated agricultural Stybarrow (Carnarvon Offshore Basin) - Oil Field Sunrise Dam - Gold Mine - Underground project, and a native title agreement has been signed. BHP BILLITON PETROLEUM PTY LTD The State is currently considering development options. Development BHP Billiton is proceeding with the development of Expenditure: $500m. ANGLOGOLD AUSTRALIA LTD the Stybarrow oil field, approximately 65 km north- Employment: Construction: 650 AngloGold Ashanti commenced underground development in October 2003 at the Sunrise Dam west of Exmouth, in 825 metres of water. It will be gold mine to test the feasibility of expanding to the deepest oil field development ever undertaken Ammonia/Urea underground operations. The study involves the in Australia. Stybarrow will involve a subsea development of two declines, totalling 9 km in length, Burrup Peninsula - Ammonia Urea Plant development and an FPSO vessel which will be able in the vicinity of previously defined reserves. The DAMPIER NITROGEN to process approximately 80,000 bbl/d of liquids. A first underground gold was produced in Q4 2004. The Dyno Nobel has purchased the interests of Plenty nine well drilling program commenced in September company expects to make a decision on whether to River (Plentex) and Thiess in a large scale ammonia/ proceed to full-scale underground mining in early 2006 and is scheduled to take 12 months to complete. urea project to be located on the Burrup Peninsula. 2007. A positive decision is expected to increase the Stybarrow and the adjacent small oil rim of the Dyno Nobel has put plans for this project on hold life of the project to at least 2012. Eskdale field have estimated recoverable oil due to current economic conditions. The company Expenditure: $87m. reserves of 60-90 million barrels. First production is also conducting a feasibility study into developing is expected in Q1 2008, with an estimated economic a 230,000 t/a ammonium nitrate production facility, which could be located adjacent to the ammonia/urea Heavy Mineral Sands field life of 10 years. plant. The alternative (to a large scale ammonia Expenditure: $815m. Cataby - Heavy Mineral Sands Mine plant) of building a small scale ammonia plant ILUKA RESOURCES LIMITED to supply the ammonium nitrate plant is being Vincent (Carnarvon Offshore Basin) - Oil Field Iluka Resources proposes to develop a heavy investigated as part of the feasibility study. mineral sands mine near Cataby, 200 km north of WOODSIDE ENERGY LTD Expenditure: $900m. Perth, to produce up to 780,000 t/a of heavy mineral Approval of the first phase of the Vincent oil Employment: Construction: 1000; Operation: 130 concentrates over a 5-year period. The EPA has development was given in March 2006. The field released its report and recommendations on the is located approximately 50 km north-west of Bauxite/Alumina proposal. Production is expected to commence in Q1 2008. Exmouth in a water depth of about 350 metres. Oil Wagerup/Willowdale - Alumina Refinery Train 3 Cloverdale - Heavy Mineral Sands Mine will be produced through a subsea development Expansion and processed and stored in a FPSO vessel. Drilling ILUKA RESOURCES LIMITED ALCOA WORLD ALUMINA AUSTRALIA activities are scheduled to commence in Q1 2007. Iluka proposes to develop a new mineral sands mine Alcoa is investigating the feasibility of a third at the Cloverdale deposit, located 6 km south east of First oil is planned for 2008 with initial production at production train expansion at its Wagerup alumina Capel. The proposal involves the progressive mining about 100,000 bbl/d. refinery to increase capacity up to 4.7 Mt/a. On 14 of around 3.5 Mt of resource at an average heavy Expenditure: $1b. September 2006, the Minister for the Environment mineral grade of 18% over a 2-year mine life. Subject approved the expansion proposal. A decision on the to government environmental approvals, the project Rare Earths project is expected Q1 2008. is scheduled to commence pre-production in the Expenditure: $1.5b. first quarter of 2007, with production expected soon after. Cloverdale will replace production from Iluka’s Mt Weld - Rare Earths Operations Employment: Construction: 1500; Operation: 260 adjacent Yoganup West mine site when it ceases LYNAS CORPORATION LTD Worsley/Boddington - Alumina Refinery Expansion operation in 2007. It will utilise an existing screen Lynas has recently secured $75 million funding to 4.4Mt/a plant at Yoganup West and the ore concentrator at the to develop an open pit mining operation at Mt WORSLEY ALUMINA PTY LTD Yoganup site. Weld, located about 35 km south of Laverton, and BHP Billiton has environmental approval to expand Gwindinup - Heavy Mineral Sands Mine a rare earths processing plant in Malaysia. Lynas its Worsley alumina refinery from 3.7 Mt/a to 4.4 Mt/ BEMAX CABLE SANDS (WA) PTY LTD has given the formal go-ahead for the project. a. A final investment decision is dependent on market The Gwindinup mineral sands project is located conditions, including construction costs. approximately 30 km south of Bemax’s Bunbury The mine has full environmental approval and pit Expenditure: $900m. Mineral Separation Plant (“MSP”) and comprises the development is expected to commence in May 2007 Employment: Construction: 500; Operation: 150 Gwindinup North and South deposits. Environmental following approval of the mining proposal. First approval for the project has been granted and production is scheduled in the second half of 2008. Electricity final environmental management plans have been The development at Mt Weld will involve mining approved. Development of the Gwindinup project is and trucking ore to Leonora and then railing it to Gnangara - Bioenergy scheduled to commence in Q1 2007. The six-year plus project is expected to come online when operations Esperance Port for export. The Mt Weld deposit BEACONS CONSULTING are completed at Ludlow at the end of 2007. An contains an estimated resource of 7.7 Mt at 11.9% Beacons is planning the development of its Perth existing wet plant will be used for the project grade for 917,000 tonnes of rare earth oxides (“REO”). Bioenergy Project, involving a 45 MW base load power and material will be treated in the Bunbury MSP. Lynas is planning to mine up to 0.2 Mt/a of ore, station at Neerabup, 50 km north of Perth. The power Gwindinup contains a reserve of 5 Mt of ore at a heavy producing 10,500 t/a of REO. A Heads of Agreement station will burn timber waste from pine plantations and mineral grade of 12.6%. for supply to a global consumer of rare earths was municipal green waste. Financial closure is expected by Expenditure: $88m. 2006/07, with construction commencing shortly after. signed in February 2006. Employment: Construction: 120; Operation: 35 Expenditure: $90m. Expenditure: $80m. Happy Valley - Heavy Mineral Sands Mine - Employment: Construction: 250; Operation: 45 Happy Valley Employment: Construction: 12; Operation: 40 Mirambeena - Bioenergy Project BEMAX CABLE SANDS (WA) PTY LTD BEACONS CONSULTING Located adjacent to the Bemax’s Gwindinup deposits, Zinc/Copper the project will involve the mining of mineral sands Great Southern Bioenergy Holdings Ltd is planning a from two deposits (Happy Valley North and South) North Eastern Goldfields - Jaguar - Base Metals Mine staged 2 x 45 MW base load bioenergy power station located on private land and in a State Forest. The at Mirambeena, near Albany. The plant will burn JABIRU METALS LTD level of assessment for the project has been set at residues from the harvesting of bluegums for export Environmental Review and Management Program. Jabiru Metals Limited has commenced construction chips. Financial closure is expected in 2007 with the Bemax is currently preparing a scoping document of the $56 million Jaguar copper-zinc mine 60 km first 45 MW plant in operation by 2009. The second that will be open for public comment for a two week north of Leonora. The mine is expected to have a stage expansion is anticipated about two years later. period. Happy Valley contains a reserve of around The company is also planning a wood pelletising 5-year life, with concentrate production commencing 6 Mt of ore at a heavy mineral grade of 11.3%. project based on processing plantation wastes as a in Q2 2007. Development of the north deposit is expected to feedstock for bio-energy plants. commence in 2007 and on the south deposit in 2008. Expenditure: $69m. Expenditure: $94m. Expenditure: $69m. Employment: Operation: 100 Employment: Construction: 250; Operation: 45 Employment: Construction: 100; Operation: 30

28 29 Prospect Prospect Projects Under Consideration (as at 13/2/2007)

Jangardup South - Heavy Mineral Sands Mine Great Southern Region - Southdown Magnetite Mine Mid West Region - Weld Range Iron Ore Mine BEMAX CABLE SANDS (WA) PTY LTD GRANGE RESOURCES LIMITED MIDWEST CORPORATION LIMITED The Jangardup South minerals deposit is situated Grange is finalising a bankable feasibility study on Midwest Corporation proposes to develop a 15-20 54 km south of the Nannup township and adjacent the 479 Mt Southdown magnetite iron ore project, Mt/a iron ore mine at Weld Range 65 km south-west to the D’Entrecasteaux National Park. Cable Sands located approximately 90 km north-east of Albany. of Meekatharra, producing a mix of hematite lump and fines. The project is expected to utilise a new rail The company proposes to produce 6.6 Mt/a of estimates that the deposit would provide 1.8 Mt of line and a new deep water port facility at Oakajee. The minerals. Feasibility and environmental studies are magnetite concentrate, which will be transported company commenced an extensive drilling program in well advanced. An environmental impact statement for via a slurry pipeline to the Port of Albany for export June 2006 and is currently completing a pre-feasibility the project is being prepared. and pelletising overseas. Subject to government study. Subject to completion of successful studies Expenditure: $70m. approval, construction is anticipated to commence in and government regulatory approvals the company Q1 2008, with commissioning Q4 2009. The project is anticipates that first shipment will occur late 2010. Employment: Construction: 100; Operation: 50 currently being environmentally assessed at a Public Expenditure: $800m. Kemerton - Titanium Dioxide Pigment Plant Environmental Review level. Employment: Construction: 900; Operation: 220 Expansion Expenditure: $560m. Pilbara - Iron Ore Mine Rail and Port Development Employment: Construction: 700; Operation: 200 LYONDELL CHEMICAL COMPANY FORTESCUE METALS GROUP (FMG) Lyondell has environmental approval for a major Jack Hills - Jack Hills Hematite Mine Stage 2 (and Mid FMG is proposing to develop a new 45 Mt/a iron ore expansion of its Kemerton titanium dioxide pigment West Infrastructure) mine at Cloud Break in the Chichester Ranges of plant near Bunbury to a capacity of 190,000 t/a. A the eastern Pilbara. The mine will be serviced by decision to proceed is dependent on market factors. MURCHISON METALS LIMITED a multi-user railway and new port facilities at Port Expenditure: $470m. Murchison Metals is progressing a definitive feasibility Hedland. Preliminary earthworks and dredging have study and exploration drilling on its proposed Jack commenced at Port Hedland. Construction of the Employment: Construction: 500; Operation: 200 Hills Stage 2 project. The company anticipates that 10- railway is underway to supply the Chinese market from Keysbrook - Heavy Mineral Sands Mine 25 Mt/a direct shipping hematite would be transported early 2008. Expenditure: $3.2b. OLYMPIA RESOURCES LIMITED by a new railway to a new deepwater port at Oakajee, north of Geraldton. Subject to government approvals, Employment: Construction: 1500; Operation: 300 Olympia proposes to develop an open cut mineral construction of Stage 2 is predicted to commence in Q3 sands mine located near the township of Keysbrook, Pilbara - Rapid Growth Project 4 2008, with the first ore shipments in late 2010. approximately 70 km south of Perth. Olympia has BHP BILLITON IRON ORE PTY LTD Expenditure: $1.7b. identified proven and probable reserves of 41 Mt of ore Further to Rapid Growth Projects (“RGP”) 1, 2 and containing 1.2 Mt of zircon, ilmenite and leucoxene. A Mid West Region - Extension Hill Hematite Mine 3, BHP Billiton proposes to expand the production capacity of its Pilbara iron ore operations to 155 Mt/a. life of mine toll treatment agreement for the operation MT GIBSON IRON was recently reached with Cable Sands whereby RGP4, which is focussed on expanding the Newman Mount Gibson is progressing a definitive feasibility heavy mineral concentrates produced at Keysbrook operations, is currently in the feasibility stage. Subject study to examine the viability of mining 2-3 Mt/a will be trucked to Cable Sands’ plant at Bunbury for to BHP Billiton Board and government approvals, hematite to be railed to the port of Geraldton for a three year construction program is scheduled to processing. Subject to government environmental export. The project is being environmentally assessed commence in mid-2007. approvals, construction is expected to commence in the at a PER level and is currently in the appeals stage. The Expenditure: $1.8b. second half of 2007, with first production in mid-2008. company anticipates that mining will commence in late The estimated mine life is 8 years. 2007, subject to government regulatory approval. Iron Ore Processing Expenditure: $18m. Expenditure: $73m. Employment: Operation: 30 Fortescue (Cape Preston) - Mine and Pellet Plant Employment: Construction: 150; Operation: 100 MINERALOGY PTY LTD Kwinana - Titanium Dioxide Pigment Plant Expansion Mid West Region - Extension Hill Magnetite Mine Mineralogy Pty Ltd’s Fortescue magnetite deposits TIWEST JOINT VENTURE ASIA IRON/SINOM lie over three discrete blocks (North, Central and Tiwest has environmental approval for the staged Southern), some 20 km from deep water at Cape A feasibility study has been completed on the Preston, south-west of Dampier. Mineralogy has now expansion of its Kwinana pigment plant to 180,000 production of up to 5 Mt/a of magnetite concentrate, t/a. A decision to proceed with further stages within this finalised an agreement with the Chinese company which will be transported by slurry pipeline to the CITIC Pacific Ltd on development of the Central ore approved expansion is dependent on market conditions. port of Geraldton for export. The project has been blocks. Mineralogy will retain rights to the Southern Employment: Construction: 108; Operation: 98 environmentally assessed at the PER level and is and Northern blocks. The CITIC agreement will involve mining, concentrating, pelletising and export through Shark Bay - Coburn - Heavy Mineral Sands Mine currently in the appeals stage. Site construction is anticipated to commence in late 2007, subject to new port facilities at Cape Preston. This could lead to a GUNSON RESOURCES LIMITED government regulatory approval. number of projects, exploiting Mineralogy’s magnetite deposits, producing concentrate, pellets and DRI. Gunson proposes to develop the Coburn mineral Expenditure: $715m. sands project, located south of Shark Bay, about 650 Expenditure: $2b. Employment: Construction: 1000; Operation: 280 km north of Perth. The project consists of the Amy Employment: Construction: 2000; Operation: 400 Zone deposit which has a total indicated and inferred Mid West Region - Karara Hematite Mine resource of 725 Mt, averaging 1.4% heavy minerals. GINDALBIE METALS LIMITED Molybdenum The project has received Federal and State government Gindalbie Metals proposes to develop a direct shipping Pilbara - Spinifex Ridge Mo/Cu mine environmental approvals for mine development. hematite ore project of 1.5-3 Mt/a at Mt Karara, with Environmental management plans are expected to be MOLY MINES LIMITED mining to commence in Q4 2007 and shipping in Q2 approved in March 2007. Gunson is working towards The Spinifex Ridge Project is located 50 km north- 2008. The company is currently continuing a drilling finalising its definitive feasibility study and a final east of Marble Bar in the Pilbara region of Western program to expand the current 14.1 Mt at 60.6% Fe Australia. Moly Mines completed its pre-feasibility investment decision is likely in first half of 2007. inferred resource. Gindalbie proposes to truck the study in February 2006 and has progressed Expenditure: $85m. ore to Morawa, then rail the ore from Morawa to the immediately into a bankable feasibility study, which is Employment: Construction: 200; Operation: 20 port of Geraldton for export. The project is currently due for completion by mid 2007. Once operational, the undergoing environmental assessment at a Public 15 Mt/a operation will be Australia’s first world-class Iron Ore Environmental Review level. molybdenum and copper project. Expenditure: $622m. Expenditure: $75m. Brockman - Brockman 4 Iron Ore Mine Employment: Construction: 400; Operation: 375 Employment: Construction: 200; Operation: 171 HAMERSLEY IRON PTY LIMITED Hamersley Iron is currently undertaking pre-feasibility Mid West Region - Karara Magnetite Mine Nickel studies on developing a new mine at its Brockman 4 GINDALBIE METALS LIMITED Goongarrie - Kalgoorlie Nickel Project - Mine (laterite deposit. Construction is likely to commence in late Gindalbie Metals intends to develop a 7.7 - 10 Mt/a ore) and Hydrometallurgical Processing Plant 2007, with commissioning in 2009. magnetite concentrate project, for at least 40 years, at HERON RESOURCES LTD its Mt Karara deposit which has a JORC indicated and Cape Lambert - Cape Lambert Port Expansion A detailed pre-feasibility study is continuing inferred resource of 1.29 billion tonnes at 36.3% Fe. for the development of a 50,000 t/a mine and ROBE RIVER MINING COMPANY PTY LIMITED It is proposed that the magnetite concentrate will be hydrometallurgical processing plant at Goongarrie, Robe River Mining recently announced its planned transported by slurry pipeline to the port of Geraldton about 85 km north of Kalgoorlie. The project will be expansion of the capacity of its port facilities at Cape for export and pelletising overseas. The project is based on the company’s laterite nickel resources of Lambert, east of Karratha. The expansion would lift currently undergoing environmental assessment at 903 Mt grading 0.74% Ni and 0.05% Co. Heron and Inco the design iron ore export capacity of the facilities to a Public Environmental Review level. The company signed a formal agreement in July 2005 under which 85 Mt/a. It is anticipated that the expansion would be anticipates that first shipment will occur in Q1 2010, they will complete the feasibility assessment and, if completed Q4 2008. subject to government approvals. warranted, develop the project. Inco is completing a confirmatory diamond drilling program, aimed at Expenditure: $1.1b. Expenditure: $1b. confirming leach feed grade estimates derived from Employment: Construction: 450; Operation: 70 Employment: Construction: 400; Operation: 240 Heron’s previous RC drilling. Inco proceeded to Step 2

30 31 Prospect Prospect Projects Under Consideration (as at 13/2/2007)

of the pre-feasibility Study on 25 September 2006 and Macedon (Carnarvon Offshore Basin) - Gas Field The development possibilities for these fields have has until 30 September 2007 to complete the Step 2 BHP BILLITON PETROLEUM PTY LTD been enhanced by recent significant discoveries by leaching and beneficiation test-work and determine the other parties nearby, which may provide tie-in potential The Macedon gas field, located about 50 km north of appropriate drilling methods and spacings to complete for Petrel and Tern to service domestic gas customers. the Step 3 resource drill-out. Exmouth, was discovered in 1992 by the West Muiron-3 A conceptual plan involves initial development of well, with a follow-up appraisal campaign in 1994. BHP Petrel with a pipeline to an onshore gas plant and Expenditure: $1.4b. Billiton is continuing to investigate domestic market a subsequent phase that completes Petrel and Employment: Construction: 1000; Operation: 300 opportunities for Macedon, which is estimated to develops Tern. North Eastern Goldfields - Yakabindie Nickel Mine contain a gas resource of up to 1.2 Tcf. Gas recovered to Expenditure: $1b. BHP BILLITON NICKEL date is dry, containing no condensate or LPG. Platinum Group Metals Halls Creek - Panton Sill-Platinum Project The Yakabindie project is based on a large nickel Onslow - LNG Plant deposit situated near BHP Billiton’s existing Mt Keith PLATINUM AUSTRALIA LIMITED BHP BILLITON PETROLEUM nickel project and is estimated to contain a resource of The Panton platinum-palladium deposit is located 289 Mt @ 0.58% nickel. BHPB is considering developing BHP Billiton Petroleum and ExxonMobil are conducting 60 km north of Halls Creek in the State’s Kimberley Yakabindie as an integrated part of the Mt Keith project, a pre-feasibility study into the development of their region, and contains the highest grade of PGMs known and is conducting a pre-feasibility study, including infill jointly owned Scarborough gas field located offshore in in Australia. A feasibility study has found that while drilling of the ore body and metallurgical testing. about 900 metres of water and 280 km north-west of the project is technically sound, it is not commercially Onslow. The project proposal includes development of viable at current metal prices and exchange rates. Expenditure: $20m. Further optimisation study work will continue so that an associated 6 Mt/a LNG plant at a site approximately Pilbara - Nickel Mine the project is in the best possible position to move 4.5 km south-west of Onslow. The bulk of the LNG forward when more favourable conditions prevail. SHERLOCK BAY NICKEL COMPANY produced is to be sold to the United States west coast Sherlock Bay Nickel Corporation is currently and Asian energy markets. The Pilbara LNG Project Pilbara - Platinum Deposit investigating the feasibility of the Sherlock Bay nickel sanction is expected by Q4 2007 and construction is HELIX RESOURCES NL project, 100 km east of Karratha. The company intends scheduled to commence soon after. LNG production is Helix Resources NL has established an indicated to develop an approximately 9000 t/a nickel project anticipated by late 2011. resource of 9.2 Mt at 2.9 g/t combined platinum, based on the Bioheap ore treatment process. A major palladium, rhodium, and gold, 0.2% nickel, and 0.3% Expenditure: $5b. review of the project is underway, taking into account copper at its project site near Karratha. Preliminary current resource estimates and to confirm the results Employment: Construction: 2400; Operation: 125 mining studies suggested a mining rate of combined of prior metallurgical testing. In January 2006 the open cut and underground production of 1.5 Mt/a. Pyrenees Development (Carnarvon Offshore Basin) company announced the commencement of test work Further activity was postponed in early 2003, as a result to explore options for cost effective methods of acid - Oil Fields of poor exploration results and a decreased palladium supply. All other feasibility work is on hold until the acid BHP BILLITON PETROLEUM PTY LTD price. The project is under review. generation test work is complete. The proposed Pyrenees development is located 45 km Salt Expenditure: $30m. north of Exmouth in approximately 200 metres of water. The project is in the feasibility stage. The preferred Exmouth Gulf - Yannarie Solar Salt Project Oil & Gas Developments development concept is an FPSO vessel connected STRAITS SALT PTY LTD to subsea wells and flowlines. The FPSO will have a Straits Salt is currently investigating the feasibility of Barrow Island (Carnarvon Offshore Basin) - Gorgon LNG design capacity of 80,000 bbl/d of liquids. The field life producing up to 10 Mt/a of salt in the eastern Exmouth CHEVRON AUSTRALIA PTY LTD is estimated to be 20 years. Gulf area, 1100 km north of Perth. It has exploration The Gorgon Joint Venture is considering an 10 Mt/a licences over the area of interest while it undertakes its LNG and domestic gas development at Barrow Island, Scarborough (Carnarvon Offshore Basin) - Gas Field feasibility studies. Straits’ Environmental Review and based on gas from the Gorgon and Jansz fields. The EXXON MOBIL Management Program has been released for public submissions by the EPA. The company is in discussions EPA released its environmental assessment Bulletin The gas field is located in around 900 metres of water on 6 June 2006 recommending that the project not with government regarding appropriate tenure and and about 280 km offshore, in the Carnarvon Basin with associated matters. proceed. The Minister for the Environment upheld the probable reserves of approximately 8 Tcf of gas. BHP appeals against this advice on 12 December. The joint Expenditure: $200m. Billiton Petroleum completed 3D seismic survey work venture is anticipating approvals during this year so it Employment: Operation: 120 is in a position to start construction in 2007. The Gorgon and drilling of Scarborough-3, 4 and 5 wells during joint venturers have market commitments for 75% of 2004 and early 2005. Evaluation of the data is complete Timber the LNG product. and ExxonMobil announced in May 2006 that it is now Mirambeena - Engineered Strand Lumber Expenditure: $11b. interested in assessing the potential development. BHPB is also conducting a pre-feasibility study to LIGNOR LTD Employment: Construction: 3000; Operation: 600 assess the viability of providing Scarborough gas to its Lignor Ltd is proposing the development of Browse Basin - Ichthys (Browse Offshore Basin) proposed Pilbara LNG plant near Onslow. an engineered strand lumber plant located at INPEX Expenditure: $100m. Mirambeena, near Albany. The plant will source most of its timber from the extensive eucalypt plantations The Ichthys gas and condensate field was discovered Scott Reef/Brecknock (Browse Basin) - Gas Fields growing in the Albany region and will use technology in 1980 and is located in 250 metres of water, developed by the German engineering company, approximately 440 km north of Broome and 250 WOODSIDE ENERGY LTD Siempelkamp. The company has completed its km from the mainland. Six discovery and appraisal Woodside discovered gas and condensate at Torosa feasibility study, with construction planned for 2007 and wells have been drilled in the period 2000-2004. (Scott Reef) in 1971, Brecknock in 1979 and Calliance operations by late 2008. The P50 estimated recoverable resource in place (Brecknock South) in 2000. The fields are located Expenditure: $300m. is approximately 10 Tcf of gas and 312 mmbbl of in water depths of up to 800 metres, about 425 km Employment: Construction: 400; Operation: 140 condensate and LPGs. The permit is owned by Inpex north-west of Broome and 250 km from the mainland. Browse Ltd (76%) and Total (24%). Development of the The reserves in these fields are currently held as Vanadium field is planned to include offshore semi-submersible a contingent resource and are estimated to be in excess facilities and a subsea pipeline to an offshore location, of 20 Tcf of gas and 300 million barrels of condensate. Pilbara - Balla Balla Vanadium/Ferroalloys Project where approximately 6 Mt/a of LNG will be produced During 2007 Woodside (Operator and ~50% interest AUROX RESOURCES LIMITED for export to the Asia-Pacific market, with the first LNG Aurox is nearing completion of its bankable feasibility shipment scheduled for 2012. The company is also holder) is planning to drill one exploration well and a further four appraisal wells as well as acquire addition- study on the Balla Balla vanadium/titanomagnetite looking at new technologies associated with GTL and iron ore project located mid-way between Karratha DME, as well as possibilities for domestic supply. al 3D seismic data and conclude engineering evaluation and Port Hedland. Granted mining leases contain a 306 Expenditure: $8b. studies to finalise a development concept for a LNG Mt resource grading 0.66% V2O5, 43% Fe and 13% Ti, Employment: Construction: 2000; Operation: 500 production facility capable of supporting up to 15 Mt/a including an initial ore reserve of 54Mt at 0.73% V2O5. of LNG. Start-up of LNG production is expected within Figures confirm a likely 30-year mine life. Carnarvon Basin - Pluto LNG the window of 2012 to 2014. Windimurra - Vanadium Pentoxide mine and WOODSIDE Tern/Petrel (Bonaparte Offshore Basin) - Gas Fields processing plant The Pluto gas field was discovered in April 2005. It is PRECIOUS METALS AUSTRALIA LIMITED approximately 180 km from the Burrup Peninsula. The SANTOS LIMITED The offshore Petrel gas field, discovered in 1969, is Windimurra, located approximately 80 km east of field contains an estimated resource of at least 4.1 Tcf Mount Magnet, has JORC-compliant resources of of relatively dry gas, with small amounts of condensate located about 250 km west of Darwin on the WA/NT 147.75 Mt @ 0.46% vanadium, including a proven and low levels of carbon dioxide. Woodside Energy seabed border in the Bonaparte Basin. The offshore reserve of 50.4 Mt @ 0.49% vanadium. PMA has plans to develop LNG facilities on the Burrup Industrial Tern gas field, discovered in 1971, is located about completed a feasibility study and construction is Estate to produce 5-7 Mt/a of LNG from this field. A 300 km west of Darwin in WA waters in the Bonaparte scheduled to commence in 2007, with production final investment decision is planned for April 2007. Basin. Field development options include installation in 2008. Expenditure: $5b. of unmanned offshore production platforms with a Expenditure: $149m. Employment: Construction: 1500; Operation: 150 pipeline to a gas treatment plant south of Darwin. Employment: Construction: 400; Operation: 120

30 31 Prospect Prospect Sir David gets close up and personal with Mt Keith wildlife

Down to earth: Sir David eyeballs a new Aussie mate, a large male bungarra during his visit to Friendly neighbours: Sir David and his crew visit Albion Downs Station near Mt Keith to Mt Keith. catch up with local pastoralists, the Payne family.

The BBC’s world-renowned eggs. Not entirely shy, they are also in naturalist, Sir David Attenborough, regular contact with mine employees has flown into the heartland of and people living on pastoral stations in Western Australia’s $3.7 billion a the Mt Keith area. year nickel industry for what could After Sir David’s film crew chose a suitable be his last documentary visit to location, a local lizard wrangler grabbed Australia. a large male bungarra and placed it in front of a seated Sir David Attenborough. The centre of his attention during a Everyone stopped and waited for the brief fly-in visit to BHP Billiton Nickel bungarra to make the mad dash for West’s Mt Keith nickel operations, 720 freedom. However, the big lizard just sat km northeast of Perth, was a reptile there and looked at Sir David, and for a commonly called a “bungarra” or monitor time, Sir David just sat and looked back. lizard, and scientifically known as Varanids panoptes. Quietly and with all the passion that Sir David is renowned for, he began to speak Footage of this curious animal will be about the bungarra, its behaviours and its spliced into the final chapter of the importance within an arid landscape. television veteran’s “Life in Cold Blood” series on reptiles. The famous British broadcaster then lay on the ground so he could be Reptiles and amphibians have ruled photographed next to the bungarra. their world for nearly 200 million years, and today there are more than 13,000 Sir David was assisted on his visit to species of them. Some are huge and Mt Keith by local mine environmental among the deadliest creatures on advisors Leisa Turner and Josh Levett. earth. Some are tiny and among the strangest creatures alive. In an earlier interview, Sir David (now 80) said: “Once I have completed the Bungarras typically live in hot desert reptile series that will be enough. It would country such as the North Eastern complete the survey for me. I will have Mine tour: Sir David (left) joins a BHP Billiton official on an Goldfields, and reproduce by laying given a series on every group of animals.” inspection of the Mt Keith nickel mine north of Leonora.

32 Prospect Significant resource projects underway Visit us online or planned in Western Australia

Western Australia continues to lead the way as Australia’s No.1 Prospect can be downloaded free of resources investment destination, with more than $80 billion worth charge from the Internet by visiting the of projects either underway or planned for the State over the next few website of the Department of Industry years. This will bring tremendous benefits to the State including more and Resources at: www.doir.wa.gov.au than 31,000 additional construction and nearly 8000 full-time jobs.

Project value Employment (estimated A$m) Construction Permanent Alumina Prospect Alcoa’s Wagerup/Willowdale refinery Train-3 1500 1500 260 Subscription/Change of address expansion ABN: 69 410 35 356 Worsley Alumina’s refinery expansion 900 500 150 Sub total 2400 2000 410 Iron and steel Name: BHP Billiton’s rapid growth projects 3&4 3800 900 150 Fortescue Metals Group’s mine, rail and port proposal 3200 1500 300 Gindalbie Metals’ Karara magnetite mine and pellet plant 1000 400 240 Grange Resources’ Southdown magnetite mine 560 700 200 Hope Downs Limited’s iron ore mine 1500 1000 300 Position: Murchison Metals’ Jack Hills Stage mine & 1700 30 90 infrastructure Asia Iron/Sinom’ s Extension Hill mine 715 1000 280 Organisation: Midwest Corp’s Weld Range mine 800 900 220 Mineralogy’s Cape Preston mine and pellet plant 2000 2000 400 Address: Robe River’s Cape Lambert port expansion 1100 450 70 Hamersley Iron’s Dampier port expansion 920 800 200 Sub total 17295 9680 2450 Nickel/cobalt Heron Resources’ Goongarrie mine and plant 1400 1000 300 Type of business: BHP Billiton’s Ravensthorpe mine 1800 2000 380 Sub total 3200 3000 680 Phone number: Petrochemicals CSBP Chemical’s Kwinana ammonium nitrate plant 200 n/a n/a Dampier Nitrogen’s ammonia-urea plant 900 1000 130 Email Sub total 1100 1000 130 Please tick the appropriate box Oil, gas and condensate Please add me to your mailing list to receive Prospect Chevron’s Gorgon gas/condensate project 11000 3000 600 magazine. I would like a subscription for one year @ $12 (incl. GST) Woodside’s Vincent oil project 1000 n/a n/a two years @ $22 (incl. GST) Inpex’s Ichthys LNG project 8000 2000 500 three years @ $32 (incl. GST) Woodside’s Angel gas/condensate project 1600 n/a n/a North West Shelf JV’s LNG Train-5 2425 1500 20 BHP Billiton’s Onslow LNG plant 5000 2400 125 My cheque made out to the Department of Industry and Resources, is enclosed OR please debit the amount to Santos’ Tern–Petrel gasfield project 1000 n/a n/a my credit card using the following details:

Woodside’s Pluto LNG plant 5000 1500 150 Type of card: Visa Bankcard Mastercard BHP Billiton’s Stybarrow oil project 815 n/a n/a

Sub total 35840 10400 1395 Expiry date Other This form will become a tax invoice for GST purposes when payment is made. Argyle Diamonds’ underground mine 1200 250 500 Change of address BGM’s Boddington Wandoo gold mine expansion 2000 1000 650 (please make changes required on one of your old labels). Griffin Energy’s Bluewaters coal-fired power station 400 600 50 Lyondell’s titanium dioxide pigment plant expansion 470 500 200 Please photocopy or cut coupon and mail to: Prospect subscriptions Ord irrigation (Stage 2) project 500 650 550 Information Centre Lignor’s engineered strand lumber project 300 400 140 Department of Industry and Resources Mineral House, 100 Plain Street Moly Mines’ Spinifex molybdenum/copper mine 622 400 375 East Perth, Western Australia 6004 Straits Resources’ Yannarie salt project 200 n/a 120 Sundry projects — confidential and others 15000 2000 300 Sub total 20692 5800 2885 TOTAL 80527 31880 7950 From March 2007 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 South Tidepole 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 BarrowGorgon 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 L Karratha . Scott Reef Blacktip. Woollybutt / PIchthys I Radio Hill . Brecknock ) Balmoral :Whundo Cu Zn + Munni Munni . Calliance Griffin Oil ) Balmoral South Turtle / Development Area = Mitchell Plateau  / Eskdale/ Ord Stage 2-M2 SkiddawEnfield WyndhamL  / / Vincent Yammaderry Crest Ord Stage 2-Mantinea Flats  Stybarrow / /  Saladin Koolan Island   ./  ) Laverda Pyrenees Group Cowle  Skate Cockatoo Island ) ) Ord Stage 1 . L al Gas Pipeline )  Roller r Robe Middle Robe Mesas Lake Argyle Hydro  Macedon NOnslow ) Robe Mesa J Mesa A Stickle . Pilbara LNG ) Bungaroo Creek Tubridgi KIMBERLEY ? erth-Dampier Natu Argyle P DerbyL Lloyd N Boundary Yannarie West Terrace // Sally MalayI Homestead ) / ? Ellendale Silvergrass ) Sundown ICopernicus L Blina Panton Sill + Nammuldi ) Broome Manyingee Brockman 2 ) / Rough Range Brockman 4 ) :Pillara Zn Pb : 0 100 E Paulsens 200 km Koongie Park Zn Cu Ag RESOURCE SYMBOLS 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 NPort Hedland Salt /Oil field Ronsard Island  L 6Balla Balla ) Natural gas / oil field Nimingarra P :Salt CreekZn Pb Yarrie) Natural 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 Woodie Woodie M : Coal E Telfer Au Cu C Nifty Cu Coal/coal bed methane (CBM) mines and deposits PILBARA Golden EagleE Lignite mines and deposits MAnt Hill : Copper-Lead-Zinc Cloud Break) Maroochydore Cu Co :Mines and deposits Koodaideri) )Christmas Creek Kintyre Diamonds Marandoo Western 4 ) Roy Hill ) )Yandi/BHPB ?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 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 N EJundee/Nimary Smelters and refineries I Shark BayL Magellan Pb: West Musgrave Bluebird–Meekatharra Phosphate H Gabanintha WilunaE 0 Coburn E ) E Mines and deposits Weld Range ) 6Wiluna West Williamson 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 Thunderbox RMines and deposits ) Tallering Peak Lawlers E Soak ' E K Marshall Pool 8Silicon smelters L AIS Jetty 0 50km 6 Lords Henry & Nelson IK Sickle Windimurra Jaguar Zn Cu: E 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 * Rutile Minjar E Gossan Hill Ag Au Sons of GwaliaEMurrin E 2Mt Weld OMines and deposits BP Oil Refinery Alinta Wind farm Mt Karara Mt Mulgine ESunrise Dam * Synthetic  PMount Horner ))EBlue Hills Murrin Uranium # Cement and Lime Yardarino. )Koolanooka Granny Smith–Wallaby Rutile Centauri 1 / Hovea–Eremia E Red October Mines and deposits Chlor Alkali Neerabup Dongara /P/ Xyris )Koolanooka South  Cliff Head //HDongaraApium HM Tropicana E Vanadium-Titanium Chemicals Jingemia /P 4Three Springs ) Mt Gibson 6 Malaga Brick . Mulga Rock Mines and deposits  Desalination Middle Swan Brick Beharra Springs/ E Davyhurst E E Midland Brick P H Eneabba Sand George Fertilizers Woodada Mt GibsonWindarling Range) I Goongarrie •PERTH Springs C E Carosue Dam NON-MINERAL PROJECTS Airport Brick Tarantula Central West Paddington E  Fused Alumina Caversham Tile Mt Jackson) CawseI Lindsays Find Irrigation/water schemes ) T IBlack Swan L Fused Zirconia L  Mayfield EMD/HiTec Major port handling facilities Fremantle Emu Downs Wind Farm Mt Pleasant EE E Kanowna Belle – Red Hill  9 HIsmelt ) E QIBulong Major power stations Armadale Brick Cooljarloo H Koolyanobbing KundanaE E Avalon Plant  LPG HCataby Super Pit Downstream timber processing plant Cardup Brick QKalgoorlie Ni Smelter Gas pipeline Proposed gas pipeline Q Nickel Refinery Coolgardie-Redemption E IBlair-Area57 SEE INSET A Mt MarionE CarnilyaIEAldiss–Randalls  Power Station Westonia E I OPERATING PROJECTS ARE SHOWN IN BLUE H Long–Victor IKambalda Concentrator POTENTIAL PROJECTS ARE SHOWN IN RED Keysbrook Marvel LochE Nepean I I I Beta-Hunt Sodium Cyanide E Spargoville ESt Ives PROJECTS ON CARE AND MAINTENANCE ARE Yilgarn Star I O * Titanium Pigment Pinjarra Armstrong I I Bald Hill SHOWN IN PURPLE Zirconia < Miitel–Redross E Lanfranchi PERTH• Trident <=Huntly Pinjarra Gallium E Boddington Au Cu Emily Ann – Maggie Hays I E Central Norseman WaroonaH < I Forrestania Wagerup = Kemerton H Saddleback O'Sullivans Chlor Alkali Kemerton 8 R Silicon Smelter  Scaddan Phillips River – TrilogyE IRavensthorpe Australia H CPremier  Ewington L Dardanup  Dardanup Muja  Esperance Capel Synthetic Rutile * HGwindinup Manjiump H Capel H Ludlow HH Jangardup South ) Southdown Tutunup SouthH Yoganup West C HCloverdale Leeuwin - Naturaliste CBM Mirambeena  .Whicher Range OGreenbushes  L Albany Albany Wind Farm 0 100 200 400 300 km