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.