Market Update September 2020 Market Update - September 2020 2

WA Project Update

At TR we pride ourselves on being the Partner of Choice for Technical Professionals. We believe that a key part of our role is to ensure that our clients and candidates are kept up to date with the latest developments in our Industry.

In order to keep our Trusted Partners up to date we have reviewed and compiled a summary of major projects. These projects are the lifeblood of the economy and they enrich the lives of all West Australian’s.

WA has many natural advantages to protect it from the worst of the health effects of COVID-19, the decision by both state and federal governments to grant an exemption to mining to keep them open has also meant that we have been shielded from the worst effects financially as well.

COVID-19 has still had a negative impact and certainly the impositions of longer rosters and tighter controls has provided challenges to both the site and Perth based workforce.

Thankfully, the majority of our industry was able to transition to working from home arrangements meaning that they were able to stay working and productive.

With the difficulty in engaging people from the east coast on a FIFO basis the demand for people in WA has continued to grow.

The majority of our clients in the space are enjoying record prices for their product and they are looking to continue to complete their greenfields projects and are investing in existing infrastructure.

We have also seen increased activity in base metals such as copper/gold and with signs that the market is starting to turn around the picture for WA mining is looking positive.

Unfortunately, the Oil and Gas sector has had to deal with the double impact of both the Corona virus and a depressed oil price globally. This has resulted in widespread job losses across the operators and a slowing down or putting on hold of many of the major projects.

The State Government is set to fast-track $2.3 billion worth of projects to help reboot the COVID-19 hit economy. With a massive pipeline of road works and their Metronet program forming the centrepiece of the works.

If you are interested in seeing the quality of candidates, we have in our network then please call me on 0422 848 865 or email at [email protected]

Alternatively, if you are looking for your next opportunity, please get in touch with the myself for a confidential discussion.

techresources.com.au Mining

Koodaideri The pre-feasibility study project concept included a 40Mtpa capacity dry crushing and screening plant, Non- Location: Process Infrastructure (NPI), product stockyards, rail loop Project Owner: and load-out as well as a 170km rail link to the main line. Project Engineering Consultancy: Worley & Calibre The process plant features the construction of the Projects (signalling and communications) following major facilities: Construction Contractors: • Primary Crusher apron sized for up to 300 tonne class Primero ∙ NPI ∙ $115 million haul trucks • Dual truck tipping points and ROM dump hopper of Pindan ∙ Camp Construction ∙ $90 million 600 tonne live capacity and discharge surge bin of NRW ∙ Bulk earthworks and the Southern rail ∙ $137 600 tonne million • Direct feed crushing facility complete with dump Acciona Clough JV ∙ Great Northern highway road over rail hopper, gyratory crusher, service crane, rock breaker bridge and discharge apron feeder onto the overland Project Value: ~$3.5 billion conveyor Project Status: Detailed design and construction. • Conveyors feeding a coarse ore fixed stacker • Primary crushed ore stockpile with 25,000 tonne live Project Status: The project is an open cut iron ore mine storage and reclaim with two apron feeders and associated infrastructure including railway, roads, • 7-bay screening plant with shuttle fed, bins, feeders, administration buildings, water supply infrastructure and and screens accommodation camps. • Allowance for a future 8th product screening bay in Koodaideri has an estimated mine life of 30 years and the design is expected to produce up to 70Mtpa of iron ore. It is Rio • Two bay secondary crusher facility with bins, belt Tinto’s first-ever ‘intelligent mine’, with autonomous feeders and MP1250 type secondary crushers drilling, haulage, and rail transport. All designs are digital • Sample plants – cutters, conveyors, and equipment and first being built as 3D models, to become digital twins for sampling lump and fines for maintenance once the elements have been built. • Stockyard with two slewing and luffing stackers and a Aimed to be the smartest, safest, and most efficient mine rotary reclaimer they have ever constructed. Development is expected to • Volumetric train load-out. The major facilities are require 2000 employees for construction and will provide linked by conveyors capable of providing an average a further 600 permanent jobs during operation. 43 Mtpa SOP. More detail on the major facilities is provided in the following sections.

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Koodaideri Stage 2 Western Turner Syncline Stage 2

Location: Pilbara Location: 35km North-West of Tom Price Project Owner: Rio Tinto Project Owner: Rio Tinto Project Engineering Consultancy: Worley Project Engineering Consultancy: Calibre Projects Construction Contractors: TBA (Brownfields) Mondium (Greenfields) $400 million Project Value: ~$3.5 billion Construction Contractors: TBA Project Status: Pre-feasibility study Construction Period: First quarter of 2020 Project Details: Phase 2 of Koodaideri could increase Project Value: ~$1 billion annual capacity to 70 million tonnes, the pre-feasibility Project Status: Construction study is ongoing. There are significant innovations in the Project Details: scope including: Brownfield • A digital replica of the processing plant, accessed in Project outcomes include the construction of 13km real time by field workers haul road and all non-process infrastructure for WTS2 • Fully integrated mine automation and simulation mine, Drill and blast / load and haul over 4 years, 28mt systems road train haulage of high-grade iron ore from mine to • Advanced automation including an automated processing. Project will be in operation for over 4.5 years workshop and will produce 7Mtpa of ore. • Numerous data analytics capabilities and control loops to optimise production and reduce downtime. The proposal will comprise of an infrastructure corridor (approximate length of 12 km) linking B1 to the S10 mine Koodaideri will feature technology already in use across site, including a conveyor system, light and heavy vehicle Rio Tinto, such as autonomous trucks, trains, and drills, access roads, above‐ground power lines, water pipelines and implement systems connecting all components of and communications. the mining value chain for the first time. The mine support infrastructure (located predominantly The development will consolidate everything Rio Tinto near B1) will include primary crushing facilities, ROM has learned from its studies into finding advanced ways pad, workshops, fuel storage/refuelling facilities, to extract minerals while reducing environmental impacts waste disposal facilities, explosives storage facility, and improving safety, known as the Mine of the Future™ communications infrastructure, heavy and light programme. vehicle access roads, power distribution infrastructure, administration facilities, and other ancillary facilities as required.

Greenfields The investment into the Western Turner Syncline Stage 2 will add to the existing mine site. The outcome will include the construction of a new crusher and a 13-km conveyer. The new conveyor system is set to help lower the greenhouse gases being produced by the existing road haulage system by 3.5% The existing haul truck fleet will be fitted with Autonomous Haulage System (AHS) technology as of 2021 to enable autonomous operations at WTS2. The investment into WTS2 is set to help sustain the existing workforce of Rio Tinto’s Greater Tom Price production hub which will exceed 1000 people at the peak of construction. Production of the first ore form the new crusher is scheduled for 2021.

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West Angelas (Deposit C, D and G) Robe Valley (Mesa H and Mesa B&C

Location: Pilbara Location: Pilbara Project Owner: Rio Tinto (53%), Mitsui (33%), Nippon Project Owner: Rio Tinto Steel (10.5%) and Sumitomo Metal Industries (3.5%) Project Engineering Consultancy: Calibre Projects Project Engineering Consultancy: Worley Construction Contractor: Multiple small contractors, main Construction Contractor: BGC Contracting ∙ Bulk package yet to be awarded. earthworks ∙ $100-$200 million CAPE ∙ Miscellaneous Services ∙ $12 million NRW ∙ Infrastructure ∙ $100 million CPB Contractors ∙ Bulk earthworks ∙ $150 million Monadelphous ∙ SMP ∙ $100 million Project Value: ~$2.15 billion Project Value: ~$600 million Project Status: Detailed design Project Status: Detailed design into construction Project Details: Mesa H – Located approximately 16km execution. south west of Pannawonica the Mesa H project proposes Project Details: The expansion to the existing mine is set the development of above and below water table cut to increase production capacity from 29 million tonnes of iron ore pits, Including water management infrastructure iron ore to 35 million tonnes of iron ore a year. The mine and other associated infrastructure. The proposal is to life will be extended to approximately 2030. sustain production from the existing Mesa J operation This expansion involves a 10km overland conveyor and and includes development of above and below water new primary crushing building to transport ore from table mine pits and associated infrastructure, waste the C and D deposit to the existing West Angelas mine, dumps, stockpiles, and associated infrastructure, as along with existing brownfields modification to mine and well as processing facilities and water management infrastructure. There will also be further development of infrastructure. It will utilise and integrate with existing West Angelas deposit B, which will create an extension to infrastructure and facilities of the Mesa J Operation the plant, providing additional heavy mining equipment including ore processing facilities, water management as well as new ore stacker and new non-process infrastructure, power, and rail infrastructure. Mesa B&C – The proposal is set to revise the existing Additional clearing of up to 4310 ha of native vegetation Mesa A iron ore project located 43km south west of will be required to mine the C, D and G iron ore deposits. Pannawonica. The proposal will sustain production Mine dewatering will be required to accommodate below from the existing Mesa A operation and will include the water table mining, involving an additional abstraction of development of water treatment facilities, processing up to 8 GL/a of groundwater. facilities, and water management infrastructure. It will also consist of additional mine pits; extension of the mine pit and alteration of the MEZ at Mesa A, extension of mine pits at Warramboo to include BWT mining, development of AWT mine pits at Mesa B, development of AWT and BWT mine pits at Mesa C, development of AWT mine pits at Highway and Tod Bore. The expansion plan won Environmental Protection Authority approval in May 2019, and the first ore is due in 2021. Equipment automation will be extended, including the retrofitting of 34 haul trucks. Rio Tinto have stated that Mesa H is experiencing delays in approvals which has resulted in the potential delay of the expected ore production.

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South Flank Iron Ore Mine South Flank will run for 25 years and will improve BHP’s average iron grade from 61 per cent to 62 per cent while Location: Pilbara also increasing the proportion of lump iron ore produced Project Owner: BHP by the company from 25 per cent to 35 per cent. South Project Engineering Consultancy: Flank’s first iron ore production is anticipated to be in Worley and Fluor (PMC) 2021. SIMPEC will provide expert engineering services directly South Flank will require the establishment of mining to BHP in relation to efficiently completing the Ore operations, as well as construction of associated Handling Plant area. SIMPEC Pty Ltd has been awarded a infrastructure including: second order with BHP Billiton Iron Ore Pty Limited. • Primary crushing facilities located to the north of Construction Contractor: Decmil ∙ Accommodation proposed deposits village ∙ $150 million • Overland conveyors to Mining Area C • Coarse Ore Stockpile and Ore Handling Plant NRW ∙ Bulk earthworks ∙ $176 million infrastructure at Area C Clough ∙ NPI and ore handling plant • Expansion of the existing Mulla Accommodation Civmec ∙ Fabrication and assembly contract ∙ $48 million Village Monadelphous ∙ Outflow infrastructure ∙ $108 million • Expansion of existing non-processing infrastructure Thyssenkrupp ∙ Rail mounted stackers and reclaimers ∙ and industrial facilities to support construction. $250 million In October 2019 BHP have reported that the construction Project Value: ~ $4.7 billion of South Flank has now reached the halfway mark. Project Status: Construction commenced in July 2018 and is expected to conclude in late 2020. Project Details: Most of South Flank’s production will replace the volumes that will be lost when the reaches the end of its working life in the near future, but with Yandi producing about 65 million tonnes a year, it will help BHP to reach its goal of exporting 290 million tonnes a year after 2019.

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North Star – Iron Bridge Stage 2 reflect peaks in the annual production rate up to 50 Mtpa. The estimated mine life is 24 years. Location: Pilbara Eliwana will entail physical elements including a mine and Project Owner: associated infrastructure as well as operational elements Project Engineering Consultancy: Hatch including mine pits, ore processing (tailings and waste), Construction Contractor: water supply, power supply, dewatering and surplus water management. MACA ∙ Bulk earthworks and infrastructure $26 million The project will require 143km of rail and FMG has been McNally Group ∙ Camp Infrastructure approved for physical elements including railway and Project Value: ~$3.6 billion associated infrastructure (57,000 ha rail development) Project Status: Detailed design, early construction. as well as construction and operational water supply. Project Details: FMG Iron Bridge Limited has approved Development of the Eliwana Project will maintain the second stage development of its’ North Star Fortescue’s low-cost status, providing FMG with Magnetite Project, located approximately 110km south of greater flexibility to capitalise on market dynamics while Port Hedland in the Pilbara region of , maintaining a minimum 170 million tonnes per annum with operations expected to start in the first half of 2022. production rate over 20 years. The Project includes a new mine with one open pit, This Project allows FMG to commence the supply of one waste dump, processing area, accommodation Fortescue Premium product to the market from existing camp, sewerage treatment, workshops, fuel storage operations in the second half of FY19 with volumes and other associated mine infrastructure to enable increased as Eliwana ramps up to full production. extraction of magnetite ore at a rate of up to 5.0 Mtpa for The Eliwana Project will build on Fortescue’s approximately two to three years. development and construction capability, helping to Ore will be processed through crushing, screening, and increase their iron grade percentage, utilising the latest dry magnetic separation. Ore is expected to be trucked technology, autonomous trucks and design efficiency to Port Hedland for export via a new mine access road, while redeploying existing assets to this world leading local roads, and the Great Northern Highway. development. Capital expenditure is expected to be incurred as follows: Eliwana (Western Hub) FY19 - US$165 million Location: Pilbara FY20 - US$760 million Project Owner: FMG FY21 - US$350 million Project Engineering Consultancy: Engenium / Onyx Projects / FMG Construction Contractor: BCG Contracting awarded the contract for Stage 1 Earthworks, Roadworks and Drainage works. NRW ∙ Earthworks and rail ∙ $138 million SIMPEC ∙ Accommodation village ∙ $10 million Pacific Industrial ∙ Steel Fabrication Project Value: ~$1.8 billion Project Status: Production due to commence December 2020 Project Details: The project, which is located 90 km from Tom Price in the Pilbara, is set to be the replacement of FMG’s depleting Firetail iron ore mine. Over the life of the mine, the average annual production rate is estimated at 30 Mtpa however infrastructure will be constructed to

techresources.com.au Pilbara Transmission Project Chichester Solar/Gas Hybrid Project Location: Pilbara Location: Pilbara Project Owner: Fortescue Metals Group Project Owner: Fortescue Metal Group and Alinta Energy Project Engineering Consultancy: Nemms JV Project Engineering Consultancy: Engenium Construction Contractor: TBA Construction Contractor: Downer Project Value: ~$250 million Project Value: $188 million Project Status: Execution Project Status: Under Construction Project Details: The aim of the project is to integrate Project Details: Alinta Energy and FMG are working FMG’s mining and port operations into one standard on the installation of electricity infrastructure that will 220k network system. Enabling FMG’s existing Solomon provide the Pilbara with low emission renewable energy. Mine power station to supply power to the Iron Bridge The project will be comprised of an: Magnetite Project which is currently in construction. • Extension of the existing transmission PTP will need establishment of a <400km high voltage line from FMG’s Christmas Creek and Cloudbreak. transmission lines and 5 HV substations. The transmission line will be a 60km and will carry The project will be broken down into three main stages: 220kV along with an addition of a 3km 33kV line at Christmas Creek and a 11kV line at Cloudbreak. Stage 1: Solomon to Iron Bridge • Installation of a 60MW solar generation. • 223km Approximately 230,000 x 250 kW panels will be • 220kV dual circuit installed over the area over which Alinta has Land • 4 x 220kv terminal substations tenure. • 2 x overhead fibre OPGW • New substations will be built on Christmas Creek and Stage 2: Lambda to Cloudbreak Cloudbreak. • 78km The project is estimated to provide 200 construction • 220kV single circuit jobs. • 1 x overhead fibre OPGW

•Stage 3: North Star to Port Hedland • 97km • 220kV single circuit • 1 x 220kv terminal substation • 1 x overhead fibre OPGW

Construction of earthworks and transmission lines are expected to begin in early 2020.

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Marillana Winu Location: Pilbara, 100km NW of Newman Location: Paterson Province Project Owner: Brockman (50%) MinRes (50%) Project Owner: Rio Tinto Project Engineering Consultancy: Golder Associates Project Engineering Consultancy: Ausenco (Study) Construction Contractor: TBA Construction Contractor: TBA Construction Period: TBA Construction Period: TBA Project Value: $300 million Project Value: $80 million Project Status: Feasibility Project Status: Feasibility Project Details: Project area covers 82km² bordering the Project Details: The Winu cooper-gold project is based . Marillana is surrounded by world-class in the Yeneena Basin of the Paterson Province. Currently deposits owned by major iron ore players including BHP, Rio Tinto have released data on 42 drill holes which Rio Tinto and FMG. Brockman will export ore through Port includes 14 diamond drill holes and 28 reverse circulation Hedland. drill holes that have recently been completed on the Marillana has a significant Mineral Resource estimate site. The drill hole intercepts include 155.1 metres at 0.41 of 1.63bt of hematite detrital and channel iron deposit per cent copper, 0.38 grams of gold per tonne and 2.39 mineralization. grams of silver per tonne. Drilling is ongoing with eight diamond rigs and three reverse circulation rigs drilling. Rio Tinto are expecting to release further results in the first quarter of 2020.

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Talison Lithium Greenbushes Mine Kemerton Lithium Plant

Expansion 3 (CGP3) Location: Kemerton - South West, WA Location: Greenbushes Project Owner: Albemarle Project Owner: Talison (51% Tianqi, 49% Albemarle) Project Engineering Consultancy: Wood Project Engineering Consultancy: MSP & Lycopodium Construction Contractor: CIVMEC ∙ Structural, Construction Contractor: TBA mechanical, and piping works $48 million Project Value: ~$516 million Monadelphous ∙ Pyromet structural, mechanical, Project Status: Under consideration. and piping $100 million Project Details: The expansion will include building a new Project Value: ~$1 billion lithium concentrate plant, known as CGP3, capable of Project Status: Construction underway. producing 520,000 tonnes per annum of chemical-grade Project Details: Albemarle are joint owners of one lithium concentrate, a new crushing plant and necessary of the world’s largest lithium mines in the world, infrastructure with enough capacity to support CGP3 Greenbushes. The lithium mine produces one third of and another similarly sized chemical-grade lithium the world’s lithium and is owned by Albemarle (49%) concentration plant. and Tianqi (51%). Albemarle has secured the federal CGP3 is due to be commissioned the fourth quarter of and state environmental approvals needed to develop 2020 with another plant possibly in 2022, subject to the the Kemerton plant and construction has begun, with timing of final board approval — will essentially mirror initial production scheduled to start in 2020. Albemarle’s the existing CGP1 facility that has been in operation at production is set to commence with a single train rate Greenbushes since 2012 and the new CGP2 facility that producing 20,000tpa, with a potential expansion up to is now being built and is due for commissioning in the 100,000tpa of by 2025 as a result of second quarter of 2019. the addition of four additional trains. The engineering design work to define the scope of and The proposal includes the construction of up to 5 Lithium budget for the expansion is complete. Talison said that, as Hydroxide Product process trains and associated with CGP2, about 90% of the expansion project budget infrastructure including. will be spent in Western Australia, with the construction workforce on-site set to peak at more than 300. About • Administration facilities 250 new permanent jobs will be created once CGP3 is • Workshops fully operational. • Supply warehouses • Fuel and reagent storage • Amenities • Laboratory • Control centre • Water management infrastructure • Service corridor •

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Beyondie Potash Coburn HMS Location: 160km south east of Newman (Heavy Mineral Sands) Project Project Owner: Kalium Lakes Location: South of Shark Bay Project Engineering Consultancy: DRA Global Project Owner: Strandline Resources Limited Construction Contractor: DRA Global Project Engineering Consultancy: AECOM Project Value: $216 million Construction Contractor: TBA Project Status: Consideration. Project Value: ~$173 million Project Details: TThe Beyondie Potash mine is Australia’s Project Status: Construction underway. first sulphate of potash mine, the mine is set to produce Project Details: Strandline Resources Limited, has plans 90,000 tonnes of SOP a year with an estimated mine for a heavy mineral sands project 250 km north of life of 30 years. Currently SOP is imported from Russia, Geraldton in Shark Bay. The project is predicted to require Canada and Germany with Australian farmers paying 170 employees in the construction process. The mine is over $1000 per tonne. The project is set to create over expected to produce 49,500tpa of Zircon, 109,000tpa 100 jobs for the region of chloride ilmenite and 23,500tpa of mixed rutile- leucoxene over its 22.5-year mine life. The Definitive Feasibility Study showed that Coburn will generate strong financial returns over a long life. The design and construct duration to achieve first ore to process facilities is expected to be 18 months duration. Strandline will now advance project funding, offtake, and strategic partner arrangements, and begin awarding major work packages.

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Windimurra Perdaman Urea Project Location: Sites C & F within the Burrup Strategic Location: Mount Magnet Industrial Area Project Owner: Atlantic Project Owner: Project Engineering Consultancy: GR Engineering Perdaman Chemicals and Fertilisers Pty Ltd Construction Contractor: TBA Project Engineering Consultancy: Saipem Clough Joint Project Value: $127 million Venture Project Status: Studies Construction Contractor: TBA Project Details: The Windimurra project originally entered Construction Period: TBA production in 2000 under Xstrata partnering with Project Value: $4.5 billion Precious Metals Australia but closed in 2003 due to an Project Status: Feasibility/Study extended downturn in vanadium prices. In 2005 PMA regained control of the project and invested more than Project Details: The Proponent proposes to establish $100 million however 2009 the project collapsed just a state-of-the-art urea production plant using natural before completion. Atlantic finished the project in 2012 gas as feedstock in the Burrup Strategic Industrial Area but a fire in 2014 caused over $100 million in damage (BSIA), approximately 8 km from Dampier and 20 km which resulted in project coming to an end. north-west of Karratha on the north-west coastline of WA. The urea plant will have a production capacity of In 2018 Atlantic began to invest into the Windimurra approximately 2 million tonnes per annum (Mtpa) and project again this was due to the project being acquired the project involves piping natural gas from the nearby by an Indonesian investor the purchase coincided with Woodside LNG plant to the project site under a long-term vanadium prices reaching a nine-year high. The mine is commercial off-take agreement. expected to produce 235Mt of the resource and have a 25-year life cycle. The area between Sites C and F was examined by the Department of Jobs, Tourism, Science, and Innovation Nolans NdPr (JTSI) and LandCorp to establish the technical feasibility of amalgamating these two discontinuous land parcels Location: Northern Territory to a single amalgamated industrial location. Based on Project Owner: Arafura Resources Limited the Phase 1 results of this feasibility study, the preferred Project Engineering Consultancy: KBR and WAVE site layout option is to split the urea plant footprint into International two parts which are aligned with Sites C and F. The two Construction Contractor: TBA sites would be connected by a 30 m wide easement to accommodate an elevated causeway for road and Project Value: $680 million infrastructure requirements. The Proponent will address Project Status: Pre-construction environmental and heritage impacts as a result of use of Project Details: The project site is located 135 kilometres Sites C and F and the connecting causeway. north along the Stuart Highway from the town of Alice The granulated urea product will be transported by closed Springs in the Northern Territory of Australia. The Nolan’s conveyor along the existing East West Service Corridor project is expected to produce up to 300,000 tonnes through to Dampier Port, where new facilities will include neodymium and praseodymium (NdPr) oxide per annum a stockpile and loading arm. Approvals for the conveyor, with an expected mine life cycle of 23 years. storage and loadout facilities will be the responsibility Arafura Resources recently awarded the project of Perdaman. Pilbara Ports Authority (PPA) will be management contract to KBR. The scope of work responsible for the shipping berths, and any necessary includes all aspects of the neodymium-praseodymium associated impact assessment within the Dampier Port. project which includes engineering design services for The EPA’s assessment report is anticipated to be finalised project non-process infrastructure. by May 2020 – with the possibility of extension if revised versions of the draft ERD or Response to Submissions document are required.

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Balla Balla Infrastructure Project Sandy Ridge Project Location: Pilbara Location: 75km north-east of Koolyanobbing Project Owner: BBI Group Project Owner: Tellus Holdings Ltd Project Engineering Consultancy: AECOM Project Engineering Consultancy: GR Engineering Construction Contractor: China State Construction Construction Contractor: GR Engineering Engineering Company Project Value: $50 million Project Value: $5.6 billion Project Status: Stage one enabling works have Project Status: Bankable Feasibility Study commenced Project Details: Balla Balla Infrastructure Group’s (BBIG) Project Details: Sandy Ridge is Australia’s first dual $5.6 billion integrated iron ore project in the Pilbara is open-cut kaolin mine and arid near-surface geological on track for development after the WA government waste repository, located 240km west north west of validated the state agreement signed late 2017. Kalgoorlie. The mine is expected to extract approximately BBIG plans to construct a new iron ore export facility on 40,000tpa of kaolin, with an initial 25-year operating the Pilbara coast between Karratha and Port Hedland, license and the potential for rolling approval extensions. with a 162km railway linking it to iron ore deposits in the It is forecasting 100 jobs for construction which is central Pilbara. scheduled to begin in June 2019. Peak of operations will require 80 workers, supported by a 71-person The project is expected to create 3,300 construction jobs accommodation camp. Surface storage operations and 910 operational positions. are then expected to begin before the end of 2019 and underground permanent isolation operations in early 2020. As well as the proposed open cut mine and processing facility, Tellus plans to construct a 40-person accommodation camp including, kitchen, dining, wet mess, recreation facilities and airconditioned bedrooms. Tellus has approval to: • Mine up to 290,000tpa of kaolin clay • Receive up to 100,000tpa of Cass IV and V waste at the facility gate • Build a 40,000 tonnes kaolin clay plant

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Mount Peake Karlawinda Gold

Location: Northern Territory, 230km north-west of Alice Location: 60km south-east of Newman Springs Project Owner: Capricorn Metals Project Owner: TNG (100%) Project Engineering Consultancy: GR Engineering Project Engineering Consultancy: Clough, Como Construction Contractor: Greenmount Engineers, SMS Group Construction Period: Q3 2018 (Wastewater Treatment) – Construction Contractor: McMahon Services Q1 2024 (Stage 4) Construction Period: TBA Project Value: $133.3 million Project Value: $853 million Project Status: Funding Project Status: Finalising permits. FEED study underway. Project Details: The Karlawinda Gold Project will Project Details: Mount Peake mine has won involve open cut mining of a gold resource from a environmental approval from the government and is single pit (Bibra) to an estimated depth of 240m. Key close to finalising two remaining permits. The Northern infrastructure and landforms that will be constructed Territory State Government expects more than 1,700 include: construction jobs and 600 ongoing jobs could be • 3.75m tpa (Oxide ore) carbon-in-leach processing created from the development of the vanadium – plant titanium – iron mine. TNG has also reached in-principal • 18 MW gas-fired power station approval for a landmark Native Title Mining Agreement. • A 230-person accommodation village and water Operation will include an open pit mine and onsite 3 waste treatment plant million tpa concentrator (expanding to 6Mtpa in stage 2 • Two waste rock dumps and a tailings storage facility development). TNG are also looking to construct a high- tech refinery in Darwin. The life of the mine is expected to run for an estimated 6.5 years, with 21 million tonnes of ore. GR Engineering has been named preferred contractor to design the carbon-in-leach processing plant. Capricorn has also executed an agreement with iron ore miner FMG to secure an accommodation camp and infrastructure facilities from the BCI Iron Nullagine project and has issued McNally Constructions with a letter of intent to award the company for the removal, relocation and installation of the camp at Karlawinda. Capricorn are raising up to $3 million to advance the project, which is now de-risked and at a shovel ready status.

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Ashburton Salt Cyclone Zircon Project

Location: 40km south west of Onslow Location: Eucla Basin Project Owner: K+S Group Project Owner: Diatreme Resources Project Engineering Consultancy: TBA Project Engineering Consultancy: China ENFI Engineering Construction Contractor: TBA Corporation (ENFI) Construction Period: TBA Construction Contractor: TBA Project Value: $350 million Construction Period: TBA Project Status: Feasibility Project Value: $223 million Project Details: K+S is currently exploring the possibility Project Status: Definitive Feasibility Study of developing a 3.5mtpa solar salt project. To produce Project Details: Discovered in 2007, the mineral resource this salt, ocean water flows into large open evaporation has been estimated at compromising 211 million tonnes. ponds, in which salt crystalizes after being exposed to In November 2014, WA’s Department of Mines and sunlight over time. Petroleum granted a mining lease for the project, which This proposal includes the construction of solar salt followed the signing of a project agreement with the evaporation and crystallization ponds, as well as traditional owners. In January 2017, the project received associated infrastructure, including seawater intake final ministerial consent, allowing for the development of pumps, channel, pipelines, electricity generation, salt a mineral sands mine and associated infrastructure. wash plant, conveyors, and stockpiles. In January 2018, Diatreme signed a cooperation and In 2018, K+S Group has had its environmental scoping consulting services agreement with ENFI for completion document approved, leading to further steps forward for of the Definitive Feasibility Study. the project.

techresources.com.au Infrastructure

Morley – Ellenbrook Line Thornlie - Cockburn Link

Location: Perth’s north-eastern suburbs Location: Perth’s southern suburbs Project Owner: Australian and West Australian Project Owner: Australian and Western Australian Government Government Project Engineering Consultancy: Arup Arcadis and BG&E Project Engineering Consultancy: BG&E, AECOM, Arcadis Construction Contractor: TBA late in 2020 Construction Contractor: CPB Contractors and Downer – Construction Period: TBA NEWest Alliance Project Value: $863 million Construction Period: 2019 - 2021 Project Status: Completing tender phase Project Value: $563 million Project Details: The Morley-Ellenbrook Line is a planned Project Status: Procurement 21km long rail line along the Transperth network aimed Project Details: The project includes the construction of a at providing better transport facilities and connections to new 17.5km passenger railway from Thornlie to Cockburn suburbs located north-east of Perth. Central stations; relocating 11km of freight lines; The Labor Government promised the project during the developing a new station at both Nicholson Road and 2017 election as part of the METRONET public transport Ranford Road with all related infrastructure; modifying programme. A tender for the conceptual planning of this Thornlie Station into a ‘through’ station, building a new project was released in late 2017. The line will involve six platform at Cockburn Central Station and duplicating stations along the network: including Noranda, Bennett three kilometre’s of track between Beckenham and Springs, Whiteman, Ellenbrook and Morley. Thornlie stations. Work includes the upgrade of existing infrastructure, This helps to provide an improved transport alternative including signalling systems, new rail infrastructure to private vehicle transport in the South Metropolitan between Bayswater and Meltham, as well as an Peel sub-region to increase connectivity, address public automatic train control system. The project is expected transport service gaps and alleviate current and future to create more than 3,000 jobs during the construction capacity pressures. phase. The main contract will be awarded in mid-2019, with In April 2020 the Western Australian Government construction to begin shortly after. During the current announced a shortlist of two proponents to design and procurement and detailed design stage, the contractor build METRONET’s new Morley-Ellenbrook Line through will be requested to optimise their construction methods an Alliance contract. The Ellenbrook Alliance (CPB and strive to achieve the target completion date in 2021. Contractors and Downer EDI) and MELconnx Consortium (led by Laing O’Rourke Australia Construction) will progress to the tender phase. The contract includes the design, construction and commissioning of 21 kilometres of a new fully electrified rail line with supporting systems and five new stations.

techresources.com.au Yanchep Rail Extension Forrestfield-Airport Link Location: Eastern suburbs of Perth (stations at Redcliffe, Location: Yanchep Strategic Metropolitan Centre Airport Central and Forrestfield) Project Owner: Australian and West Australian Project Owner: TAustralian and West Australian Government Governments (METRONET) Project Engineering Consultancy: BG&E, AECOM, Arcadis Project Engineering Consultancy: Salini Impregilo and Construction Contractor: CPB Contractors and Downer - NRW JV NEWest Alliance Construction Contractor: Salini Impregilo and NRW JV Construction Period: 2019 Construction Period: 2021 – Delayed one year Project Value: $520 million Project Value: $1.9 billion Project Status: Planning Project Status: Construction Project Details: This project includes: constructing Project Details: The Forrestfield-Airport Link will deliver 14.5km of new dual-track to extend the Joondalup Line a new rail service to the eastern suburbs of Perth with from Butler to Yanchep; developing new stations at three new stations at Belmont, Airport Central and Alkimos, Eglinton and Yanchep in conjunction with all Forrestfield. This line will spur off the existing Midland associated infrastructure; nine road-over-rail bridges; Line and run to Forrestfield through twin-bored tunnels new bus stowage depot at Alkimos; modifying Butler beneath the Swan River and Perth Airport. station into a ‘through’ station and 13.8km of new principal shared pathway for cyclist and pedestrians, In 2016, the Public Transport Authority (PTA) awarded the adjacent to the rail line. design, maintenance, and construction contract to a joint venture between Salini Impregilo and NRW. The project’s This project is meant to act as a catalyst for higher first tunnel boring machine (TBM Grace) was launched in density development, particularly around station sites July 2017 and second machine (TBM Sandy) in October which will open business and development opportunities. 2017, both of which are still operating. This project is also meant to provide alternative to private vehicles, improve public service times and increase When completed, the link will create a 20-minute train mobility to strategic metropolitan centres including trip between the city and eastern suburbs, making Yanchep and Joondalup. access to Perth Airport quicker and easier, both for residents and visitors. Construction was expected to be Procurement for a main contractor began in mid-2018, completed in 2020, but a water leak created a sinkhole on and an alliance-model contract will be awarded in 2019, Dundas Road in Forrestfield and caused the tunnel below with main construction expected to begin shortly after. to flood, damaging a 26-metre section of the tunnel.

techresources.com.au Market Update - September 2020 18

Pilbara Lightweight Rail conditions, and grade separation needs. The benefit of this is that it not only minimises the cut and fill activities Location: Pilbara required during construction, but also further reduces Project Owner: Mineral Resources environmental impact and disturbance to natural Project Engineering Consultancy: TBA landscapes. A final advantage for this system is that it is almost completely re-locatable once a resource/reserve Construction Contractor: TBA is completely exhausted. Construction Period: TBA The BOTS system is fully automated and autonomous Project Value: $1.6 billion and is remotely controlled by a centre in Perth. This will Project Status: Planning significantly reduce the operating cost as compared to a Project Details: The Pilbara infrastructure project heavy rail system. consists of a lightweight rail-based system that runs ~330km from the Iron Valley region to Port Hedland and will transport bulk ores. In 2016, Mineral Resources was given the recommendation for approval by the environmental watchdog, a key step towards the development of its’ bulk ore transport system (BOTS). The BOTS design, which will replace the need for road trains, includes an elevated structure mounted onto precast concrete beams, spanned between precast concrete substructures. This design satisfies track geometry, hydrology, topography, geotechnical

techresources.com.au Oil And Gas/LNG

Greater Western Flank Phase 2 Karratha Life Extension (KLE)

Location: Carnarvon Basin Location: Karratha Project Owner: Woodside Energy Project Owner: Woodside Project Engineering Consultancy: Wood Group Onshore Engineering: Worley ECR Construction Contractor: Salini Impregilo and NRW JV Offshore Engineering: Wood PLC, Clough Project Value: ~$2 billion Construction Contractor: UGL Cape JV and Project Status: Operational. Phase 3 project entered the Monadelphous Giovenco JV concept definition phase January 2019. Construction Period: 2016 - 2020 Project Details: Woodside were given approval for Phase Project Value: Ongoing 2 of the Greater Western Flank in 2015, which will allow Project Details: Karratha Life Extension Program is an gas development and condensation from the Keast, 8-10-year project to refurbish the Woodside Karratha Dockrell, Sculptor, Rankin, Lady Nora and Pemberton Gas Plant and associated assets. Located 1,260kms fields via a subsea tieback to the existing Goodwyn north of Perth, Western Australia and covering Platform undertaken in Phase 1. The project included approximately 200 hectares, the Karratha Gas Plant drilling of eight natural gas production wells within the includes five LNG processing trains, two domestic gas six gas fields. Offshore drilling on the wells began in 2016, trains, six condensate stabilisation units, three LPG with drilling activities and completions conducted in two fractionation units as well as storage and loading facilities campaigns. Installation of the 35km flowline connecting for LNG, LPG and condensate. The plant has the capacity the furthest well centre, Lady Nora Pemberton, to the to produce 12,000 tonnes of domestic gas per day. Goodwyn A platform was completed in approximately In total, the External Corrosion scope of work is expected seven months. Subsea installation and commissioning to cover inspection and evidence-based refurbishment of the tieback infrastructure was completed in five of 350km of piping over a period of approximately six months. The pipeline installation work was completed years. in September 2018. It was delivered $630 million under Monadelphous and Giovenco Joint Venture and UGL Cape expected costs, six months ahead of schedule, and has Joint Venture have been allocated contracts on the gas commenced gas production. Phase 3 of the Greater plant and they will provide, the planning and execution of Western Flank project aims to produce 435bcf of gas via mechanical, electrical, access, fire protection application, four subsea wells tied back to existing North West Shelf blasting and painting, cladding and insulation services of project infrastructure, with ready for start-up targeted the extension program. for 2022.

techresources.com.au Market Update - September 2020 20

Inpex – Ichthys Gorgon Stage 2

Location: Browse Basin, processed in Darwin Location: Barrow Island Project Owner: INPEX, Total, Tokyo Gas, Chubu Electric Project Owner: Chevron Power and Toho Gas Project Engineering Consultancy: TechnipFMC Project Engineering Consultancy: JKC Joint Venture Construction Contractor: Baker Hughes GE Construction Contractor: Laing O’Rourke, Civmec, Kentz, Project Value: $5.1 billion Downer Project Status: Execution Project Period: 2012 - 2018 Project Details: The Chevron Australia operated Project Value: ~US $34 billion Gorgon Project is one of the world’s largest natural gas Project Status: Operational projects and the largest single resource development Project Details: Located about 220km offshore WA, in Australia’s history. GS2 is an upgrade to the Gorgon Ichthys is the largest discovery of hydrocarbon liquids Project’s existing subsea petroleum facilities, located in Australia in 50 years. The project is more than 90 per 130km off the north-west coast of WA, at a water cent complete and is ranked among the most significant depth of around 200-1300m. Further wells and subsea oil and gas projects in the world. It is expected to produce infrastructure are to be added to the existing Gorgon 8.9 million tonnes of LNG and 1.6 million tonnes of LPG and Jansz-Io Fields to maintain future gas supply for the per annum, along with more than 100,000 barrels of Project. condensate per day at peak. Gas and condensate from Located on Barrow Island – a Class A Nature Reserve the Ichthys Field will be exported to onshore facilities for – Gorgon comprises a three-train, 15.6 million tonnes processing near Darwin via an 889 km pipeline. Most per annum LNG facility and a domestic gas plant with condensate will be directly shipped to global markets the capacity to supply 300 terajoules of gas per day to from a floating production, storage and offloading facility Western Australia. permanently moored near the Ichthys Field in the Browse With the capacity to also produce 20,000 barrels of Basin. condensate per day, the Gorgon Project will remain an important pillar of the Australian economy for decades to come as it continues to meet global demand for cleaner- burning fuel.

techresources.com.au Greater Enfield Equus Gas Project

Location: 60km off Exmouth Location: 200km NW of Onslow (Carnarvon Basin) Project Owner: Woodside Project Owner: Western Gas Project Engineering Consultancy: OneSubsea/Aibel Project Engineering Consultancy: Peritus Singapore Construction Contractor: McDermott, Baker Hughes GE Construction Contractor: TBA Project Value: $2.6 billion Project Value: $2.6 billion Project Status: Request proposals for a development Project Status: 89% complete partner Project Details: Greater Enfield is a subsea tie back Project Details: Western Gas acquired the Equus Gas into the Ngujima-Yin FPSO, currently located over the Project from Hess Corporation in November 2017, who Vincent field. The development aggregates production had invested $US1.5bn on exploration before suspending from the previously undeveloped Norton over Laverda, work. Western Gas had announced that they would be Laverda Canyon and Cimatti hydrocarbon accumulations. focusing on four main fields that hold 70% of the circa The concept consists of up to fourteen wells in total. First two trillion cubic feet of discovered gas in the license oil is expected mid-2019. In September 2019 Woodside area. The project comprises of 11 gas and condensate announced that twelve wells have been successfully fields, containing an independently certified resource completed ahead of schedule and production has begun. of more than two trillion cubic feet of gas and 42 million barrels of condensate. This is equivalent to a quarter of WA’s domestic gas demand for 20 years. Development is planned by way of an offshore processing facility and a pipeline to shore, with first gas planned for 2023. This development will be phased, first comprising three production wells linked by subsea infrastructure to a floating production storage and offloading facility. Dry gas sales will be piped to shore by way of a 220km pipeline (being designed by Peritus), with landfall being near Onslow. Gas supply is expected to be up to 250 terajoules of gas a day.

techresources.com.au Market Update - September 2020 22

Burrup Petrochemical Plant Barossa Gas

Location: Burrup Peninsula Location: ~300km north of Darwin. Project Owner: Coogee Chemicals, Mitsubishi, Project Owner: ConocoPhillips Australia Barossa (37.5%), Wesfarmers JV SK E&S Australia (37.5%) and Santos Offshore (25%) Project Engineering Consultancy: TBA Project Engineering Consultancy: Technip Oceania Construction Contractor: TBA Construction Contractor: Allseas Marine Contractors Project Value: $1.4 billion Australia PTY LTD. Project Status: Development Project Value: $500 million Project Details: Coogee Chemicals, Mitsubishi and Project Status: FEED phase. Wesfarmers are working on development of a 1.8 million Project Details: The project proposes to provide a new tpa methanol plant with an estimated cost of $1.4 billion. source of gas to the existing Darwin LNG facility; it would The project was set for public environmental reviews in backfill the facility from 2023 when the existing gas December 2018. The Burrup is site to more than a million supply from the Bayu-Undan offshore field is estimated petroglyphs up to 60,000 years old, which have been to be exhausted. The project will ensure the DLNG facility nominated for World Heritage listings, causing concern will operate for a further 20+ years, providing economic regarding the impact emissions from nearby industrial and social benefits to Darwin. The new gas export facilities will have on the rock art. pipeline will be 260-290km, connecting to the existing Bayu-Undan to Darwin pipeline, subject to agreed commercial arrangements.

techresources.com.au Recently Completed Projects

Tianqi Lithium Hydroxide Plant Tianqi’s lithium plant adds significant value to the Western Australian community, expected to supply ~60% Location: Kwinana of the world’s battery grade hydroxide. The plant is also Project Owner: Tianqi Lithium Corp expected to create a multiplier effect for other service Project Engineering Consultancy: MSP industries and business partners in the local market. Construction Contractor: Georgiou (Infrastructure, The Lithium Hydroxide plant will require major Civils), Pacific Industrial (Steel, Tanks), AGC components including. Project Value: Stage 1: $400 million, Stage 2: $300 million • Kilns, coolers, and crystallisers (FLSmidth, Metso and GEA) Project Status: Stage 1 commissioning Stage 2 under • 46 tanks from 14 m3 – 300 m3 (Pacific Industrial and construction Alltype Engineering) Project Details: Chinese resource giant Tianqi are • NPI and associated Civil work for Tianqi’s Australian currently working two phases including expansions on an Headquarters, state of the art control centre, training existing development of a $400 million Lithium hydroxide centre, laboratory, workshop, and storage facilities plant in Kwinana. The plant will be able to produce 48,000 (Georgiou) tonnes of battery grade lithium hydroxide a year and • Major steel packages for pyrometallurgical, increase its permanent workforce to 170. hydrometallurgical and final packaging circuits. The plant will tap high-grade from Tianqi’s 51% owned Greenbushes mine South West of Perth. Stage 2 of the Lithium hydroxide plant have been put Tianqi have received approval for the new works on the on hold due to the limited growth in the sector. Tianqi expansion of the mine and they have set a completion are redirecting resources for the time being to focus on date for the end of 2019. The project has helped boost commissioning and completion of stage 1. the Western Australian economy with around 80% of materials including, tanks, piping and fabrication being sourced locally.

techresources.com.au Market Update - September 2020 24

Talison Lithium Greenbushes Mine Pilbara Minerals – Pilgangoora

Expansion 2 (CGP2) Location: 120km South of Port Hedland - WA Location: Greenbushes Project Owner: Pilbara Minerals Project Owner: Talison (51% Tianqi, 49% Albemarle) Project Engineering Consultancy: Minnovo, Primero, Project Engineering Consultancy: MSP & Lycopodium Engenium (PMC) Construction Contractor: Construction Contractor: RCR (EPC) AGC ∙ SMP installation package ∙ $27 million Project Value: ~$226 million Kerman Constructing ∙ Crushing facilities ∙ $20 million Project Status: Stage 1 complete up to 85% commercial Georgiou ∙ Infrastructure and civil works ∙ $15 million production. Stage 2 expansion under construction to a Project Value: ~$516 million capacity of 5 million tonnes a year. Project Status: Construction completion and Project Details: Located approximately 120km from Port commissioning. Hedland. The lithium ore deposit in WA’s Pilbara is one of Project Details: The Greenbushes Lithium Operations the largest in the world. Pilbara Minerals have advertised are located immediately adjacent to the town of that the reserve exceeds 80 million tonnes of ore. The Greenbushes in Western Australia. It is approximately mine is expected to produce approximately 314ktpa of 250km south of Perth and Fremantle, a major container 6% spodumene concentrate and 321,000lbs of tantalite. shipping port, and 90km south-east of the Port of Pilbara minerals have forecasted a mine life revenue of Bunbury, a major bulk handling port, in the South West of $9.23 billion dollars with an estimated 36-year mine life. Western Australia. The company entered stage one commercial production, The project will expand the existing Greenbushes Lithium with a target of two million tonnes a year, at the start Mine, to increase the production of spodumene ore and of April. Early works are underway for a stage two lithium mineral concentrate from the operation. It will expansion to a capacity of 5 million tonnes a year. Stage expand from the 1591ha to 1989ha, resulting in the direct three expansion will potentially push its’ capacity to 7.5 loss of up to 350ha of native vegetation. Talison will million tonnes per year. The estimated earnings before change the mine haulage route to the site, including a new interest, taxes, depreciation, and amortization of stage mine access road and tailings retreatment plant access three could reach $10.3 billion across the life of the mine. road. The expansion will add an estimated 520,000tpa of Pilgangoora include: capacity to the Greenbushes annual lithium concentrate • Raw water and process water ponds production. • Oil water separation system • Bulk Fuel storage facility and refuel area • Reagent area • Processing plant • Power station • Diesel generators • Mobile crushing and screening plant • Bulk fuel storage • Landfill • Process plant sedimentation pond • Hydrocarbons and chemical storage areas • Pipelines • Tailing management facility • Monitoring bores • Wastewater Treatment Plant (WWTP) • WWTP Spray Irrigation Area

techresources.com.au Market Update - September 2020 25

Prelude Shell’s Prelude FLNG Facility recently reached a significant milestone, with gas introduced onboard. Location: Browse Basin The Gallina, an LNG Carrier from Singapore, carried out Project Owner: Shell the import. This cooled down the tanks and process Project Engineering Consultancy: Technip equipment and pipework with gas. With gas onboard, Prelude’s utilities can now switch to run on gas rather Construction Contractor: Technip Samsung Consortium than diesel. Construction Period: 2011 - completed 2018 The next step will be to test and ready the LNG plant on Project Value: $12 billion board Prelude in preparation for opening the wells. This is Project Status: Operational followed by a period called start-up, ramp-up. LNG will be Project Details: Shell’s floating liquefied natural gas produced after this when it is safe to do so. (FLNG) facility is 475km north-north east of Broome, A critical part of the commissioning phase is people Western Australia, and has a depth of ~250m. The movements to and from the Prelude facility. This is taking FLNG facilities’ production capacity is at least 5.3mtpa place through Broome. The focus is moving people safely of liquids: 3.6mtpa of LNG, 1.3mtpa of condensate and and working together with the Kimberley communities. 0.4mtpa of liquefied petroleum gas. The Northern Territory plays a significant role in the supply chain for Prelude, through its Darwin Supply base and contractors who manage warehousing, maintenance, and logistics.

techresources.com.au Market Update - September 2020 26 Deferred or Delayed Projects

Scarborough LNG Pluto Train 2

Location: Burrup Peninsula Location: Burrup Peninsula Project Owner: Woodside Petroleum Ltd. Project Owner: Woodside Petroleum Ltd. Project Engineering Consultancy: McDermott Australia ∙ Project Engineering Consultancy: Bechtel ∙ Front-end Floating production unit study engineering design Subsea Integration Alliance (Subsea 7) ∙ Subsea umbilical Construction Contractor: Bechtel risers Construction Period: TBA Saipem Australia ∙ Provision of export trunkline Project Value: $500 million engineering support services Project Status: FEED phase Intecsea ∙ Export trunkline engineering Project Details: The project comprises a proposed Construction Contractor: TBA expansion of the Pluto LNG facility, through constructing Construction Period: TBA a second LNG train. The expanded capacity will allow for Project Value: $15.3 billion the potential processing of third-party gas resources including the proposed Scarborough development. Project Status: FEED phase Woodside’s procurement activities will be limited to Project Details: Woodside is proposing to develop the sourcing materials or services occasionally required to Scarborough gas resource through new offshore facilities supplement the services provided by the EPC contractor. connected through 430km of pipeline to a proposed A final investment decision is targeted for 2020, and brownfield expansion of the existing Pluto LNG offshore ready for start-up of the downstream expansion is facility. It will initially develop the gas field with up to targeted for 2024. seven subsea, high-rate gas wells, tied back to a semi- submersible floating production unit, moored in 900m of water close to the Scarborough field. A final investment decision is targeted for 2020.

techresources.com.au Browse Wodgina Lithium Refinery

Location: Browse Basin Location: 90km south of Port Hedland Project Owner: Woodside Petroleum Project Owner: Mineral Resources and Albemarle Project Engineering Consultancy: KBR Project Engineering Consultancy: Mineral Resources Construction Contractor: TBA Construction Contractor: RDG ∙ Concrete and civil works Construction Period: TBA ∙ $9 million Project Value: $30 billion Mineral Resources Project Status: The project has been put on hold Construction Period: TBA Project Details: Australia’s largest untapped conventional Project Value: $800 million gas resource located approximately 425km north of Project Status: Construction has been put on hold Broome in the Browse Basin. Woodside is proposing Project Details: Refinery for hard rock lithium deposit, to develop the Brecknock, Calliance and Torosa fields billed as the world’s biggest with an estimated value containing Hydrocarbon resources – 13.9 trillion cubic of $3.6 billion. Mineral Resources partnered with US feet of dry gas and 390 million barrels of condensate. chemicals company Albemarle Corp in a $1.6 billion The front-end engineering and design contract have deal. Ausdrill is currently operating the Wodgina lithium not been awarded yet and may not be decided until the mine, who will use 29 rigs and have 150 personnel partners have a clear view on the emissions reductions on-site to deliver drill and blast services. The venture is required. Woodside CEO Peter Coleman will work closely expected to produce up to 750,000tpa of 6% spodumene with the Western Australian Government to ensure that concentrate, initially for sale and ultimately as feedstock. State benefits from the proposed developments and It is the world’s largest known hard rock lithium deposit that the EPA sets achievable and reasonable guidelines. with a 30-year estimated reserve life. In January 2020 Woodside advised that it is still in the As of November 2019, the Wodgina Project is on hold as process of finalising the gas processing deal however the site undergoes maintenance. they are foreseeing a positive outlook as Woodside and their partners are eager to start the engineering and design work.

techresources.com.au Market Update - September 2020 28

Covalent Lithium Project The project will also require a list of supporting infrastructures including: Location: 105km south-southeast of Southern Cross • Accommodation village Project Owner: Wesfamers and SQM • Wastewater treatment facilities Project Engineering Consultancy: Hatch, PMC: WSP • Landfills Construction Contractor: TBA • Water storage facilities • Pipelines Project Value: ~ $565 million • Roads Project Status: The project has been put on hold • Workshops Project Details: Wesfamers have formed a joint venture • Administration facilities with Chilean chemical giant SQM to develop their Earl • Explosives magazine Grey lithium deposit near Southern Cross. SQM who • Topsoil stockpiles have bought into the project will receive a 50% stake in the project for a $US110 million investment. The lithium Refinery expected to begin operating in 2021, 700 deposit is estimated to contain 189 million tonnes of jobs will be created at the 76-hectare Kwinana site. 1.50% Li2O, confirming Earl Grey as one of the world’s Production will be around 40,000 tonnes of battery- most significant hard rock lithium deposits. grade lithium per year. This refinery is expected to process ore from Kidman’s Early Grey deposit at its Mt The deposit has an expected mine life of over 30 – 40 Holland project near Southern Cross. years, which will require approximately 180 employees over its lifespan. The mine will run a conventional open The plant is expected to have an output of 44,000 tpa cut drill and blast method with the ore being transferred of lithium hydroxide or 37,000 tpa of lithium carbonate. to the ROM pad for processing. The Early Grey deposit, which hosts a 1.84 million tonne resource, is still open with an estimated mine life of more The proposed project is set to require: than 50 years. • An open pit lithium mine • Waste Dumb Rock 1, 2 and 3 • Processing plant (gravity separation) and concentrate storage shed • Tailings storage facility and pipelines • Power Supply • Borefield, dewatering and water

techresources.com.au Market Update - September 2020 29

Thunderbird Mineral Sands Project Sheffield has proposed that they will require the following components. Location: Dampier Peninsula, 60km west of Derby • Process water plant facilities Project Owner: Sheffield Resources • Tailing storage facility • Administration offices Project Engineering Consultancy: GR Engineering • Borefield • Storage yards Construction Contractor: GR Engineering • LTR Facility • Workshops • Power station • Medical facility and Project Value: $348 million • Communications accommodation camps Project Status: The project is currently on hold facilities (construction and mine Project Details: Thunderbird’s development is advancing, • Waste and recycling camp) with construction underway and the first production to begin in Q4 of 2020. It is estimated that the construction GR engineering have been selected as the preferred phase will be two years, and the mineral sands mine consultancy to tender for the project. having a life span of 42 years. The mineral product will be processed on site and then further transported via road Sunrise Project to the Derby Wharf for further storage and export. Location: 350km west north west of Sydney (Fifield Thunderbird has a total mineral resource of 3.2 billion District) tonnes targeting specifically zircon, ilmenite and HiTi88 Project Owner: Clean TeQ leucoxene. The initial planned mining rate will be 12 Mtpa Project Engineering Consultancy: Flour which is set to increase to 18 Mtpa by year eight. The Construction Contractor: CB&I and SNC Lavalin alliance, initial 12 years of the mine will see mining above the MCC water table, with dewatering activities required after to access the remaining orebody. Project Value: $2 billion LNG will be used for processing, which will be supplied Project Status: The project has recently been put on hold via a 15-year JVA between Woodside and Energy Project Details: The Sunrise Project is located 350km Developments, providing a low cost and low emission fuel west of Sydney is rich in mineral resources such as nickel, source, well suited to the ilmenite low temperature roast cobalt, and scandium. The project is currently still in (LTR) process. Bankable Feasibility Study, running a few months behind The processing flow sheet includes an ilmenite upgrade schedule. After geological testing, it has been confirmed step using a LTR to produce a high grade (56.1% TiO2) that Sunrise has one of the largest undeveloped nickel- sulphate ilmenite. This will be one of the highest- cobalt reserves outside of Africa. It has an estimated grade sulphate ilmenites in the global market. Smelter mine life of 39 years. The project is built on an existing modelling test work also confirms the LTR ilmenite is mine with existing infrastructure. It is expected to suitable feed for producing high quality TiO2slag (89.8% produce an average of 21,780 tpa of nickel and 4620 TiO2) and pig iron. The LTR ilmenite also has low levels tonnes of cobalt in the first 6 years of production. of alkalis and chromium making it a highly attractive Production is expected to run for 40 years, with output feedstock. declining modestly in the outer years. Clean TeQ has announced that it has collaborated with the Japanese company Panasonic Corporation. The commercial deal is a pathway for scandium oxide to be produced the Sunrise project. The deal has resulted in Clean TeQ’s shares rising 20%.

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