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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] India — Mumbai Western Australian Trade Office 93 Jolly Maker Chambers No 2 9th floor, Nariman Point • Mumbai 400 021 • INDIA Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Email: [email protected] 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 find Prospect 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.
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