MINING PROJECTS Special Report MINING PROJECTS FEATURE

MOST INFLUENTIAL FEATURE MINING PROJECTS Special Report MINING PROJECTS FEATURE

Key takeaways • Lithium projects increasingly among state’s biggest • Rebound in iron ore price opens market to smaller players • WA at centre of another commodities boom, as agricultural sector’s demand for potash set to BUSY: David Klanecky (left), Simon Birmingham, Arthur Culvahouse and Mark McGowan at the sod-turning ceremony soar for Albemarle’s Kemerton plant. Billions pour into WA’s top 10 High-level iron ore, lithium and gold projects set pace for more than 50 developments in fresh commodities boom.

Iron ore, including magnetite, WA’s Top 10 Mining Projects continues to dominate the list of SEARCHENGINE ...your key to WA business (Included if project is classified as ‘likely’ or ‘ongoing’) the state’s largest projects, with seven that are either likely or Rank Project Name Owner/Developer Category Cost ongoing, worth a combined $12.34 billion. 1 South Flank BHP Group Iron ore $4.6bn However, lithium is becoming entrenched at the top end of the 2 Iron Bridge Fortescue Metals Group, Formosa Plastics Group, Baosteel Magnetite $4.4bn list, as miners in WA gradually 3 Koodaideri Rio Tinto Iron ore $3.5bn seek to expand their involve- Adrian Rauso ment further up the processing 4 Wodgina Refinery Mineral Resources, Albermarle Corporation Lithium [email protected] $2.2bn chain. The lithium industry in WA 5 Eliwana Fortescue Metals Group Iron ore $1.7bn OTAL investment in has continued its rapid growth, 6 Robe River sustaining Rio Tinto Iron ore $1.3bn Western Australia’s 10 and there are now 13 projects in T biggest mining projects the pipeline, with a total value 7 Kemerton refinery Albemarle Corporation Lithium $1.0bn is worth $21 billion, research by of $6.45 billion. Business News has found (see list). The planned 100,000 tonnes 9 Greenbushes expansions Talison Lithium Lithium $836m Of 57 major mining projects per annum lithium hydroxide 8 West Angelas C & D Rio Tinto Iron ore $800m in the BNiQ database, a large plant at Wodgina, jointly owned portion are poised to be commis- by Mineral Resources’ and 10 Kwinana refineries Tianqi Lithium Lithium $700m sioned, with 24 under way and 16 US-based battery metals giant classified as likely to proceed. Albermarle Corporation, tops FULL LIST ONLINE businessnews.com.au/List/project FEATURE

7 IRON ORE PROJECTS WORTH $ COST INCREASE OF SHEFFIELD RESOURCES’ $ 115m THUNDERBIRD PROJECT 12.34bn 13 LITHIUM PROJECTS WORTH $6.45bn 8 GOLD PROJECTS WORTH $ 1.19bn 4 MINERAL SANDS PROJECTS WORTH $ 1.01bn

OFF-TRACK: Sheffield Resources increased the capital expenditure estimate for its Thunderbird project to $463 million.

the lithium list, with an expected Kemerton will have an Combined, Tianqi anticipates in the second quarter of 2019, as to changes in the scope of works, cost of about $2.2 billion. expected initial capacity of the two stages will produce planned. added costs associated with The Wodgina lithium plant 40,000tpa of lithium hydroxide 72,000tpa of lithium hydroxide. In November, Pilbara Min- extreme weather conditions, encompasses two 50,000tpa when it is commissioned in 2021, While there has been a surge erals’ $231 million stage two design changes and increases in lithium hydroxide modules, reaching full capacity in 2025. of activity around lithium Pilgangoora expansion was the schedule of rates. with the first scheduled to Kidman Resources’ proposed hydroxide projects, lithium approved, with commissioning Other cost pressures included be completed in 2022 and the $613 million Kwinana lithium concentrate developments are of the stage targeted for the increased charges for certain second at a later date. hydroxide refinery received also attracting substantial March quarter of 2020. A $225 equipment, along with employ- Albermarle has been busy in a shot in the arm earlier this investment. million stage three expansion ment changes due to a tighter WA over the past few months, month when conglomerate Tianqi’s 51 per cent-owned is also planned. labour market and increases in with construction recently kick- Wesfarmers launched a $776 subsidiary, Talison, (Albermarle In March, Pilbara said it was camp and certain logistical costs. ing off at its Kemerton lithium million takeover bid for the Mel- 49 per cent) resolved a cru- considering selling between 20 Gold Road indicated about hydroxide plant. bourne-based company. cial legal battle in March with per cent and 49 per cent of the three months prior to the cost In late March, Premier Mark The refinery is expected to Global Advanced Metals, after $646 million Pilgangoora con- revision the project would come McGowan joined new US Ambas- be commissioned in 2021 and the Massachusetts-owned com- centrate project, as it declared in at the upper end of the capital sador to Australia, Arthur produce 45,000tpa of lithium pany said a proposed expansion commercial production from cost estimate of between $506 Culvahouse, federal Trade hydroxide, using ore from the to Talison’s Greenbushes opera- the processing plant. million and $585 million, after Minister Simon Birmingham planned $450 million Mt Hol- tion could potentially sterilise initially estimating a $532 mil- and Albemarle representatives land mine. and waste tantalum resources Big project cost rises lion expenditure. to turn the first sod on the Kidman has a 50 per cent inter- it received from Greenbushes. While many projects are being Gruyere dwarfs the second construction, which the state est in the project, with the other The resolution means Tal- completed on budget, each of the largest gold project in the state, government said was expected half owned by Sociedad Quimica ison’s $516 million stage two state’s single largest projects Capricorn Metals’ $133 million to cost at least $1 billion. y Minera de Chile S.A., one of the expansion of Greenbushes will in the pipeline for gold, nickel, Karlawinda project, which is However, Albermarle has world’s largest producers and go ahead, with expected com- mineral sands and potash all located south-east of the town not disclosed exact financial marketers of lithium product. pletion to bring output to 1.95 experienced significant capital of Newman, and is projected to details, and many believe the The refinery will be almost a milliion tonnes of lithium con- cost increases over the past year. be commissioned in the third actual cost will be closer to the stone’s throw away from Tianqi centrate per annum. Gold Road Resources and quarter of 2019. Wodgina figure. Lithium’s Kwinana lithium Earlier this month, it also Gold Field’s 50-50 Gruyere gold Western Areas’ definitive It is set to create 500 con- hydroxide refinery. Tianqi com- received Environmental Protec- project, which is set to be com- feasibility study on its Odys- struction jobs and another 100 missioned its $400 million stage tion Authority recommendation missioned this quarter, had its seus nickel project, released in operational jobs in the South one development in January, for its stages three and four capital cost revised to $621 mil- October, detailed a capital cost West. The plant has approval and stage two is set to be com- expansions to proceed. lion in July. of $299 million. to produce up to 100,000tpa of pleted by the end of the year, at The $320 million stage one The company said the upgrade lithium hydroxide. a cost of $300 million. expansion is due to be completed in costs included $30 million due Continued next page FEATURE MINING PROJECTS

$ 700COST OF IRON BRIDGEm PILOT PLANT

LOSS: FMG expects its Iron Bridge project will perform better than other magnetite projects such as Karara (pictured). Photo: Attila Csaszar

it does not join WA’s magnetite Billions pour into graveyard. FMG’s main competitors, BHP Group and Rio Tinto, have also 100,000tpa WA’s top 10 been making moves that have EXPECTED OUTPUT OF kept iron ore at the top of WA’s LITHIUM HYDROXIDE AT WOODGINA From previous page sulphate of potash project (see projects list, buoyed by momen- page 18), had it is capital cost tum from strong iron ore prices. The capex within the DFS increased from around $371 Early construction at Rio’s increased between $99 mil- million to $587 million fol- Robe River and West Angelas C lion and $109 million from the lowing a pre-feasibility study & D projects, worth a combined $ pre-feasibility study range, that detailed scope to increase $2.14 billion, started this year, BHP’s mainly due to the installation with first ore from both projects 2021 4.6bn annual production from SOUTH FLANK of a shaft haulage system for 370,000tpa to 426,000tpa. slated for 2021. $68 million. First commercial produc- After approving its $3.5 billion SCHEDULED FOR COMPLETION Odysseus is located 370 kilo- tion is still a relatively distant Koodaideri project in November, metres north-west of Kalgoorlie. target, estimated for the fourth Rio purchased a fleet of 20 auto- Also in October, mineral sands quarter of 2022. mated trucks from Caterpillar aspirant Sheffield Resources for the East Pilbara mine earlier is still on track to be completed last year. revised the capital expenditure Nerves of steel this month. by May 2021. It has maintained a focus to estimate for its Thunderbird It has been well documented BHP has also ramped up the It is set to produce 80 million commission its $300 million project, located 60 kilometres that WA’s only major magnetite award of contracts on its $4.5 tonnes per annum. Marillana iron ore project, a west of Derby, to $463 million. operations, CITIC Pacific Min- billion South Flank project, the Mineral Resources may have 50-50 joint venture with Hong It said the $115 million cap- ing’s Sino Iron, and Ansteel and most expensive mining project diverted some of its attention to Kong-based Brockman mining, ital cost blowout was due to Gindalbie Metals’ Karara, have in the state. lithium over the past few years, in the fourth quarter of 2020. changes in the scope of work both suffered multi-billion The beneficiaries include a but it has made several moves in The iron ore market could and the infrastructure own- dollar losses. string of WA-based companies, iron ore, including the acquisi- become more crowded and less ership model, and since this However, this has not deterred such as Decmil, Clough, Mona- tion of the Koolyanobbing mine centralised in the next few announcement its shares have Fortescue Metals Group in its delphous and NRW Holdings, as in the Yilgarn and BCI Minerals’ years, as several juniors assess nearly halved to 56 cents per hunt for a higher grade of iron part of its commitment to pro- Kumina deposit in the Pilbara restarting projects in WA. share, as of May 6. ore, as it gave the green light to vide at least 75 per cent of the The Thunderbird project is work to local businesses. its 69 per cent-owned $4.4 billion SEARCH BHP Group anticipated to start production Iron Bridge project last month, South Flank is the only sub- in 2020 with a 42-year mine life. $700 million of which was put stantial iron ore project BHP There are 1,068 results from our index of 98,614 articles, Agrimin’s Lake Mackay towards a pilot plant to ensure has in development in WA, and 9,788 companies and 35,995 people MINING PROJECTS FEATURE Iron ore juniors back in game The price rebound this year has sparked renewed mining interest in a range of mothballed projects.

Adrian Rauso million tonnes of iron ore a year $0.71 levels, compared to around [email protected] Iron ore price businessnews.com.au/market-index/iron_ore_price/365 and is Brazil’s second largest $0.95 levels when the Nelson mine. Bay project was last operating 100 – A RESURGENT iron ore price The iron ore price hit $US95/t in 2014,” the company said in a has opened the door for several SEARCHENGINE after the announcement. statement to the ASX. junior miners in Western Aus- ...your key to WA business Mr McMahon said one of the But while there is evidently tralia to revive idle projects. benefits in the current market ample opportunity on the Business News has identified was the export capacity avail- supply side, issues could arise 80 – at least seven suspended iron able at certain WA ports, after around demand for the product. ore projects, most of them in Price ($US) Price major players like Mineral According to the latest sea- WA, which small mining com- Resources diverted some of sonally adjusted data from the panies are aiming to reopen. their attention to other projects Australian Bureau of Statistics, Many of the projects were 60 – and commodities. iron ore exports to China fell by squeezed out of the market and Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 “We operate in an area where $212 million in March, or 14 per abandoned as the iron ore price there’s spare capacity on the rail cent, compared with the previ- slid to a $US37 a tonne low in Northern Territory, and Ade- optimistic about the future for as well as at the port of Esper- ous month. late 2015, after nudging all-time laide-based Havilah Resources junior iron ore miners. ance, which is an iron ore port,” However, while the overall highs of more than $US190/t in received $100 million of invest- “The general consensus from he said. demand for iron ore in China February 2011. ment to partially go towards what we believe is that it (the “Mineral Resources is doing remains volatile, the demand for But over the past year, the its iron ore projects in South around 6.25 million tonnes, I price has rebounded, boosted by Australia. the fall in supply caused by Bra- But the majority of the activ- zilian iron ore giant Vale SA’s ity has been in WA, as locally tailings dam disaster at its Cór- based companies have sought to rego do Feijão mine in January. seize the favourable conditions Around $US19 billion was and revive projects. iron ore price) will stay around wiped from Vale’s share price Jupiter Mines said in March these levels for quite a long the next day, and the iron ore it was seeking to restart its time, which is obviously great,” price surged from around Central Yilgarn operations in he told Business News. We believe … (iron ore prices) will $US75/t to $US92/t in the week the eastern Wheatbelt, which But analysts have mixed stay around these levels for quite a long after the disaster because of comprises the Mount Ida and views on the price outlook. anticipated short-to-medium- Mount Mason hematite projects Investment bank UBS has time, which is obviously great term supply shortages. that were placed under care and downgraded its BHP share price - Nathan McMahon Closer to home, the closure of maintenance in 2012 and 2014, forecast on the back of predic- the Port Hedland port combined respectively. tions Vale will begin to regain its believe, and that rail is capable with localised flooding in the Last month, Macarthur Min- lost production over the next year. of around 13 million tonnes.” high-grade iron ore of at least 62 area caused by cyclone Veron- erals selected Aurizon as the “We do not see spot iron ore of Mr McMahon said he believed per cent, with lower impurities, ica in late March also created a rail haulage operator for its $226 approximately $US93 per tonne the main factor determining the is high, because it requires less temporary supply gap. million Moonshine Magnetite as being sustainable and expect success of the operation would pollution-causing beneficiation, Commonwealth Bank com- mine in the Yilgarn, which has prices to fall back over the next be the US dollar exchange rate. which is ideal for the country as modities analyst Vivek Dhar been stuck in the pre-feasibility 12 months as Australian supply The board of Nedlands-based it ramps up its efforts on envi- estimated the two events halted study stage since 2012. normalises and Brazilian supply Shree Minerals echoed Mr ronmental control. up to 6 per cent of the world’s Also in the Yilgarn region, starts to recover,” UBS said. McMahon’s sentiment. In April Commonwealth Bank’s Mr seaborne iron ore supply. Cazaly Resources appointed “We look for an average price it highlighted the exchange Dhar said the increased demand West Perth-based small cap engineering consultants Avora of $US83 per tonne in 2019.” rate as a key reason behind the for high-grade ore would be a Mount Gibson Iron has been a to assess advancing its Parker The WA Treasury’s latest iron planned restart of its Nelson long-term shift. beneficiary of the price surge. Range project, which has been ore price assessment anticipates Bay mine in Tasmania, after it “While we expect that pre- Last month it completed the $180 dormant since Cazaly com- the price returning to around ceased mining at the $25 million mium (for higher grades) to million resurrection of its Koolan pleted a definitive feasibility $US66/t by 2020-21. operation in 2014. pull back slightly from current Island mine, which contains ore study on it in 2010. However, the signs do not look “The iron ore prices in Aus- levels, we believe the broad with a grade of 66 per cent. Cazaly joint managing direc- promising for a Vale comeback, tralian dollar terms have preference for higher-grade It waved goodbye to the first tor Nathan McMahon said the as its mines face increasing reg- improved due to the exchange ores is a structural change in iron ore shipment in about four $170 million project had all the ulatory scrutiny following the rate of AUD to USD at around the market,” he said. years from the project. requisite permits, both environ- dam disaster. Nathan River Resources, a mental and mining, with an iron Earlier this month, a Brazilian Mount Gibson Iron subsidiary of London-based ore grade of 61.9 per cent. court overturned a decision to SEARCH British Marine, is restarting Mr McMahon said he hated allow the restart of its Brucutu There are 405 results from our index of 98,614 articles, the Roper Bar mine in the to forecast prices, but was mine, which produces about 30 9,788 companies and 35,995 people

OPEN: Mt Gibson Iron recently exported its first iron ore shipment from Koolan Island in about four years. Photo: Mt Gibson FEATURE MOSTMINING INFLUENTIAL PROJECTS

TAILINGSTAILINGS DAMDAM CONTRACTORSCONTRACTORS

SEARCHENGINE MINING SERVICES COMPANIES ...your key to WA business RANKED BY TOTAL STAFF IN WA

Change Offices from Year a) WA previous est. in Total staff b) inter- Rank year Company name Senior executive and title WA in WA state Services offered Notable clients

Mr Jarvas Croome a) 9 Authorised Caterpillar dealer, machinery and construction 1 — WesTrac Chief Executive Officer 1989 1,400 b) 17 equipment, finance, maintenance and resale services Rio Tinto

Mr Mark Norwell Anglogold Ashanti, Independence Group, 2 — Ausdrill Managing Director 1987 1,148 Drill, blast, and exploration Gold Fields, Western Areas

Mr Stephen Easterbrook 3 — Pilbara Access Managing Director 2007 500 a) 2 Scaffolding and rope access labour, and equipment supplier Rio Tinto, BHP, Roy Hill

Hampton Mining Open pit mining, ore haulage, heavy equipment hire, heavy Northern Star, Westgold, Saracen, 4 — Mr Bart Jones 2003 400 a) 2 haulage, potable water, drill and blast, crushing and screening, Kimberley Metals Group, Sandfire and Civil General Manager road construction and maintenance Resources, Minjar Gold Comprehensive rope access maintenance services for short or long term shutdowns Mr Brendan Halstead a) 1 and projects; Efficient means of access to difficult to reach areas of critical fixed plant Rio Tinto Iron Ore, Fortescue Metals 5  Tasman Rope Access General Manager 2015 350 b) 2 equipment; Inspection services including NDT testing; Full wear plate/liner installation Group, AngloGold Ashanti, Newmont, services; Crushing, screening, sampling, overland conveyor maintenance; ... Western Areas, Dampier Salt, Gold Fields

Mr Stewart Maddison Engineering, maintenance, preservation, manufacturing, BHP, Rio Tinto, FMG, Roy Hill, Nickel West, 6  Orontide Group Chief Executive Officer 1979 330 a) 5 fabrication Worsley Alumina, Newmont

Mr Craig Lindsay-Rae a) 2 7  Murray Engineering Managing Director 2006 290 b) 3 Electrical, mechanical, pumping, rental and automation ABB, Mako Mining

Mr Jeff Branson a) 3 Drilling and blasting, mineral sample drilling and water well 8  JSW Australia Chief Executive 2010 280 b) 1 drilling BHP, FMG, Alcoa, AMAL, Batchfire

Mr Laurie Barlow a) 1 Engineering and mining services in materials handling and 9 — FLSmidth Head of Mining, Australia 200 b) 5 mineral processing Rio Tinto

Immersive 10  Mr Peter Salfinger 1993 170 a) 2 Supplier of surface and underground mining equipment Technologies Chief Executive Officer b) 1 simulators for operator training to the global mining industry

11 GET THE FULL LIST ONLINE businessnews.com.au/List/mining_services 80

CRUSHINGCRUSHING && SCREENINGSCREENING CONTRACTORSCONTRACTORS

SEARCHENGINE WA’S LARGEST MINING CONTRACTORS ...your key to WA business RANKED BY NO. OF MINNG CONTRACTING STAFF IN WA

Change Offices No. of No. of from a) WA mine mining previous Year est. b) inter- sites in contracting Rank year Company name Senior executive and title in WA state WA staff in WA Current projects in WA

Northern Star: Jundee gold mine, Newcrest: Telfer, St Barbara: Gwalia Deeps, Gold Fields: 1 — Byrnecut Mr Steve Coughlan 1987 a) 1 6 NFP Athena at St Ives gold mine, Sandfire Resources: DeGrussa copper-gold mine, Ramelius: Water Executive Chairman b) 1 Tank Hill

Mr Chris Tuckwell a) 1 Regis Resources: Garden Well, Moolart Well & Rosemont gold mines; Pilbara Minerals: 2  MACA Chief Executive Officer 2002 b) 1 7 1,334 Pilgangoora, Ramelius Resources: Mt Magnet, Blackham Resources: Wiluna, BHP: Area C

Mr Michael Finnegan a) 2 3 — Macmahon Holdings Chief Executive Officer 1964 b) 2 4 1,206 Tropicana, Telfer, Mount Morgans

Mr Paul Muller AngloGold Ashanti: Sunrise Dam gold mine; Western Areas: Flying Fox & Spotted Quoll nickel 4 — Barminco Chief Executive 1989 a) 2 11 1,200 mines; Gold Fields: Agnew gold mine, New Holland D/D, Wallaby; Darlot; Plutonic D/D

Mr Mike Sutton Open cut mining projects currently include: Karara magnetite mine (Karara Mining), Christmas 5  Downer Chief Operating Officer 1968 a) 1 25 900 Creek iron ore mine (Fortescue Metals Group), Roy Hill iron ore mine (Roy Hill), Sunrise Dam gold Mining - West b) 2 mine (AngloGold Ashanti)

Mr Abdul Jarrah 6  Thiess Executive General Manager, 1962 2 NFP Fortescue Metals Group: Solomon Hub iron ore project, BHP Billiton Nickel West: Rocky’s Reward Australia & Pacific Nickel Mine (Leinster)

Mr Peter Cook Starlight (Fortnum), Paddies Flat/Jack Ryan/South Emu/Comet/Great Fingall/Big Bell (Central 7  Westgold Resources Managing Director 2016 a) 1 8 400 Murchison, HBJ (South Kalgoorlie)

RUC Cementation 8  Mr Barry Upton 1991 a) 2 2 Edna May, Mt Morgans Mining Contractors Managing Director 350

Swick Mining Mr Kent Swick 9  Managing Director; CEO 2004 a) 1 12 350 Newmont: Tanami, Northern Star Resources: Jundee Services (from Oct 2017)

Mr Franko Roberts 10 — GBF General Manager, IR & 1988 a) 2 2 300 Silver Lake Resources: Daisy Milano underground development and haulage Sustainability b) 2

11 GET THE FULL LIST ONLINE businessnews.com.au/List/mining_contractors 25

All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: [email protected] WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available. FEATURE MINING PROJECTS Potash players primed for slice of growing market As land and population pressures drive the need for more productive farming, WA finds itself at the centre of a new mining race.

Adrian Rauso [email protected]

INTEREST and specialist knowledge around sulphate of potash was scarce in Australia when Brett Hazleden and Brent Smoothy co-founded Kalium Lakes in October 2014. “No one really knew much about potash in Australia, Brent and I did some sampling, and we just suddenly fell into it and have been learning ever since,” Mr Hazleden, now Kalium’s managing director, told Business News. At first glance, you may not be able to tell Mr Hazelden has been venturing into uncharted waters, with development of Kalium’s flagship Beyondie project. The Balcatta-based outfit has MILESTONE: Brett Hazleden (left) and Mal Randall believe Kalium Lakes will be the first commercial producer of SOP in Australia. Photos: Gabriel Oliveria. rapidly progressed its 82 tonnes per annum sulphate of potash Protection Authority recommen- price down for Australian farm- between 100,000tpa to 200,000tpa There is also a potential inter- (SOP) operation, with plans to dation for approval and, after ers to purchase the product, will be required to meet demand national opportunity. eventually ramp up to production a final investment decision is Integer Research estimates that in the country. A United Nations report has of 164,000tpa and significantly made this half-year, the company offset existing SOP imports into expects it will be the country’s the Australian market. first commercial producer of The project, located approxi- potash as it ramps up towards mately 160 kilometres south-east nameplate production during of Newman, has a capex of $216 next year. million, and has received com- SOP, also known as potassium mitments for around 91 per cent sulphate, is a fertiliser product of its funding. and a premium version of muri- German bank KFW has locked ate of potash (MOP). in $102 million, $74 million is Compared with MOP, SOP coming from the Northern Aus- produces higher yields per hec- tralia Infrastructure Fund, and tare, encourages increased water $20.8 million from UK-based pri- retention in crops and raises its There are supply gaps in the vate equity firm Greenstone. resistance to the elements and It has also signed a 10-year diseases. global market in excess of a million offtake agreement with German Currently in Australia, only tonnes a year and, if you combine all of salt and potash miner K+S, the about 75,000tpa of SOP is used biggest producer outside of each year, as it is all imported, the potential Australian producers, you China. primarily from Germany, Canada might be getting close to that - Mark Savich In April, it became the first or Russia. potash project in Australia However, after domestic pro- POTENTIAL: Argimin’s Lake Mackay is the largest undeveloped potash-bearing salt lake in the world. Photo: Argimin to receive Environmental duction starts and drives the MINING PROJECTS FEATURE Potash players primed for slice of growing market

You can

have the best

gold mine, the

best iron ore

resource on the

planet, but if it’s

in the middle

of nowhere –

it’s not going to

happen - Mal Randall

this occurring in Asia. It also estimates Asian populations will grow by two billion people in the next 30 years. SITE: Alwyn Vorster says a SOP project’s proximity to a port is a crucial factor. Even in Australia this trend is evident. According to World Lake Wells is the most devel- There are three SOP projects “There’s obviously the normal Bank Group, from 1967 to 2016 oped prospect within Salt Lake’s in the state which exist below rush as soon as there’s something the hectares of arable land per broader Goldfields Salt Lake Geraldton, however all three are that looks good, people are quick person in the country fell from project, which is comprised of 11 currently early-stage exploration to jump on the bandwagon,” he around 3.5 to 1.9. lakes stretching across around plays. said. MILESTONE: Brett Hazleden (left) and Mal Randall believe Kalium Lakes will be the first commercial producer of SOP in Australia. Photos: Gabriel Oliveria. Investor demand for SOP pro- 615 kilometres. Parkway Minerals and Bris- “But I think in the grand jects increased in Australia as Reward Minerals was initially bane-based ActiveEX kicked off scheme of things there might revealed the world has lost about this trend became more widely the trailblazer in the potash initial studies and drilling on be a couple of us who will get 30 per cent of arable land in the acknowledged. industry after it struck a native their projects in 2011 and 2009, up and running, some of the past 30 years, a large portion of Several other potash projects title deal with Indigenous land respectively, with little advance- others – it’s like any other mine have sprouted in WA and started owners in 2008 for its Lake Disap- ment made on them over the around the place, it might be to gain momentum, while Kalium pointment SOP project, located years. too low grade, too far away from has methodically ticked off pro- approximately 320 kilometres Trigg Mining, which is due infrastructure, and they’ll just ject milestones. east of Newman. to list on the ASX next month, never get through the normal But there are several prospec- But, the Nedlands-based junior will be hoping its $4.5 million hurdles.” tive producers hot on Kalium’s has been hampered by an inabil- initial public offering will give heels, including Australian ity to attract significant capital, it momentum to get its Laver- Location, location? Potash, with its Lake Wells pro- with net cash of just $3.2 million ton Links development up and Kalium chairman Mal Randall ject, 180 kilometres north of at the December quarter, and running. believes project location is a key Laverton, scheduled for first pro- several delays at its project. The Keren Paterson-led Trigg indicator of success. duction by the end of 2020. Most recently it had to sus- initially tried to list in 2018, but “There’s a lot of questions The two-stage, $338 million pend an infill drilling program a weak capital market forced the asked along the lines of what’s project is awaiting a green light that was 66 per cent completed company to temporarily shelve the difference between us from the EPA. at the lake in September, after those plans. and the others, and really it’s Salt Lake Potash is set to its amphibious machines became Outside of WA, Verdant Min- a tyranny of distance,” he told release a mineral resource for its bogged and sometimes suc- erals is the most notable SOP Business News. Lake Way project this quarter, cumbed to complete mechanical player, with its Karinga Lakes “You can have the best gold which is situated approximately failure. and Lake Amadeus projects in mine, the best iron ore resource 300 kilometres west of Lake Wells Reward did make a positive the Northern Territory, but both on the planet, but if it’s in the near Wiluna, and it is seeking to step in late January, when it was projects are yet to surpass the middle of nowhere – it’s not going rapidly ramp up development for granted approval to have Lake feasibility study stage. to happen.” a targeted first production in late Disappointment assessed by the Mr Hazelden said all this activ- POTENTIAL: Argimin’s Lake Mackay is the largest undeveloped potash-bearing salt lake in the world. Photo: Argimin 2021. EPA. ity was to be expected. Continued next page FEATURE MOSTMINING INFLUENTIAL PROJECTS Potash players primed for slice of growing market Broome

From previous page

Mr Hazleden said Beyondie, which is situated on a 2,400- BCI Minerals: Mardie square kilometre site next to the First production aim: 2023 Great Northern Highway just south of Newman, can effectively Agrimin: Lake Mackay use all the back haulage trucks Exmouth First production aim: going up to the town and coming Q4 2022 back empty. Reward Minerals: Lake Disappointment “One of our other benefits is First production aim: Q4 2023 we sit close to the Goldfields gas pipeline and it’s a short route for us to go in there,” he said. Kalium Lakes: Beyondie BCI Minerals managing direc- First production aim: 2020 tor Alwyn Vorster agrees with sentiment around the impor- tance of location, and takes it a Australian Potash: step further, suggesting the pro- Salt Lake Potash: Lake Way First production aim: Q4 2021 Lake Wells ject’s distance from port is the First production aim: most crucial factor. “All the other SOP projects H2 2020 currently being developed in Australia are between around Geraldton 800 kilometres and 1,200 kilometres to the closest port,” Mr Vorster told Business News. Parkway Minerals: Dandaragan Trigg Mining: Laverton Links “So do the basic maths on 800 kilometres (of transport costs) … First production: N/A (still Kalgoorlie First production aim: N/A (still in some cases there aren’t good in early exploration phase) in early exploration phase) roads either that are being developed in those areas. Perth ActiveEx: Lake Chandler “Our Mardie project is right on tonnes per annum of salt, along First production aim: N/A (still in early exploration phase) the coast, with a planned jetty with an $87 million capital cost right next to SOP and salt plants, for 75,000tpa of sulphate of that would save between $50 and potash. Map: Google Maps $100 per tonne in logistics costs.” BCI has a $35 million cash bal- Esperance Mardie is both a salt and SOP ance and receives royalties from project, with SOP as a by-product the Mineral Resources-operated of salt production, and is located Iron Valley iron ore project, as kilometres, Agrimin will save $8 approximately 80 kilometres the commodity’s market recov- million in lease fees in its first south-west of Karratha. ers, which generated royalty “We’re using public infrastruc- year alone. Mr Vorster worked with Mr earnings before interest, tax, Wyndham Port near the North- ture and we have a dedicated Mr Savich is hoping to pen- Hazleden and Mr Randall at Iron depreciation and amortisation ern Territory border in sparse trucking fleet, which minimises etrate the existing Chinese Ore Holdings, which BCI was for- of $5.6 million last financial year. desert. rehandling.” market, the biggest market in merly known as when it was iron The project is still some way It is a remote location, even by The $587 million project is the world, with a more premium ore-focused. off in order to accommodate WA mining standards. expected to yield 426,000tpa of product. But after the iron ore bubble both the salt and SOP operations, But Agrimin managing direc- SOP and is slated for first pro- He said there was room for burst, Mr Vorster said the com- with first production scheduled tor Mark Savich said the project, duction in the final quarter of all of the WA producers in the pany set out to diversify in order for at least 2023, meaning BCI is which is the largest undeveloped 2022. current market, but the potash to avoid another near-death not near the front of the pack for potash-bearing salt lake in the The large scale of the project boom would not be limited to experience. first SOP production in Australia. world and the largest salt lake meant Agrimin was one of the Australia, which could create “For the next one-and-a-half to But with an enviable location in Australia, will generate signif- biggest winners from the state oversupply. two years, BCI considered many, and financial position, Mr Vor- icant cost savings in production government’s changes to the “There are supply gaps in the many opportunities, predomi- ster is confident BCI will not face and transport as the SOP prod- rental rates of potash projects, global market in excess of a mil- nately in the industrial minerals the same “serious challenges” uct makes its way to Wyndham announced in December. lion tonnes a year and, if you space, before we decided in 2018 many of the other producers will port. Due to the scale and long-life combine all of the potential Aus- that the highest-value, long-term encounter to get their projects up “This involves loading very of potash projects, the existing tralian producers, you might be opportunity was our own Mardie and running efficiently. high tonnages, we’ll be able to mining lease rental rate of $18.70 getting close to that,” he said. project on the Pilbara coast,” he One project which does not load quad road trains with 140 per hectare was reduced to $2.32 “But there are also compara- said. have the benefits of a prime tonnes, there’s a lot of economies per hectare for the first five ble peers in Ethiopia and Eritrea The pre-feasibility study in location, is Agrimin’s Lake of scale in tonnages that big that years of the lease and $4.64 per which have very large projects, June 2018 outlined a $248 million Mackay, which is located approx- allow us to get the costs down,” hectare from year six onwards. bigger than what we’ve seen in investment to produce 3.5 million imately 785 kilometres south of Mr Savich told Business News. Spanning around 5,000 square Australia.” MINING PROJECTS Special Report

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Vonex to receive cashflow via iron ore royalty Project pick-up puts pressure on skills 03 May 2019 by Matt Birney 04 Feb 2019 by Matt Mckenzie to divest all mining projects but to retain the Johnston Range royalty intensify dramatically in the next six months in response to public transport entitlement is now starting to ... program Metronet and mining ... projects. “Within civil construction, demand will be high this half for candidates with a rail background ... Expert outlines five Bougainville targets for Kalia 14 May 2019 by Matt Birney Reports show cost hike for miners exploration and mining projects, including the Batu Hijau porphyry mine in 23 Nov 2018 by Tayler Neale Indonesia that holds an ore reserve ... Mining projects in WA have tightened labour demand. Photo: FMG Tayler Neale Mining Australian ... Mergers, brownfields projects options for struggling juniors 25 Feb 2019 by Adrian Rauso Perth crypto innovators crack the code mining projects during the period including at the Batu Hijau copper/gold 22 May 2018 by Matt Mckenzie project in Indonesia, the ... Energy entrepreneur Ben Tan is planning a $16 million solar farm and crypto mining project in ... Alinta approves $400m wind farm 25 Feb 2019 by Matt Mckenzie Big spenders mining wealth Michael Finnegan said new contract wins at mining projects during the period 30 Apr 2018 by Matt Mckenzie including at the Batu Hijau ... Silvergrass iron ore mine. Matt Mckenzie Special Reports Mining Attachment Size Mining ... Projects_special_report.pdf 1.02 MB Former Rio Tinto executive Perth Airport rated best in country Bob Vassie has today been announced as the incoming managing ... 25 Feb 2019 by Mark Beyer Adrian Rauso said new contract wins at mining projects during the period including at the Concerns for local lithium if Musk’s Tesla tanks Batu Hijau copper/gold ... 22 May 2018 by Tim Treadgold with news that two new WA lithium mining projects will start production in the Mixed half-year results for local contractors next six months, ... 25 Feb 2019 by Adrian Rauso said new contract wins at mining projects during the period including at the Batu Hijau copper/gold ... businessnews.com.au