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Is there life after Olympic Dam Dr Paul Heithersay Rural Solutions SA October Journal Club Slide 2 Slide 3 Lets talk about Olympic Dam Largest Uranium Resource in the world 4 th largest Copper Resource in the World 4 th largest Gold Resource in the World 4th largest copper deposit in the world Slide 4 Lets talk about Olympic Dam 4 Australias largest underground mine, ~ 300 km tunnels Roxby Downs ~ 4500 people Slide 5 Olympic Dam Expansion Slide 6 Olympic Dam Announcement alternative, less capital-intensive design of the Olympic Dam open-pit expansion, involving new technologies, to substantially improve the economics of the project. the long term outlook for the copper market remains strong and we will continue to work closely with all stakeholders as we refine our longer term development plans for this unique, world class ore body. We want to find the right solution to unlock this resource The South Australian Government has been fully supportive of Olympic Dam and has created an environment that is highly conducive to business investment. We have been very much encouraged by their attitude to business development and the Olympic Dam expansion project Olympic Dam is a resource of enormous potential and we will continue to work on technological and design alternatives that have the potential to substantially improve the economics of the expansion, while also completing some early stage site works. Slide 7 What this means BHPH will consider new mass handling technologies including conveyors rather than trucks Minimum starter pit design New processing technology including Heap Leach of primary sulphides Leading to a step change in capital required to begin the project Technologies are being developed in SA with the assistance of local universities and companies The technology, if successful could unlock lower grade ores than currently mined Potentially leading to longer minelife. Time frames need to fall within Federal Government EIS approvals Slide 8 Slide 9 Slide 10 Olympic Dam Project Pre-Commitment Slide 11 11 Slide 12 Mineral Resources Project Pipeline 12 * PACE Co-funded *Arckaringa (CTL) Beverley South (U3O8) *Bird-in-Hand (Au) Bramfield (Fe2O3) *Carrapateena (Cu-Au) Clinton (CTL) Crocker Well (U3O8) Flinders-Reliance (Zn) Four Mile(U308) FuturGas (CTL) Gum Flat (Fe2O3) Hawks Nest (Fe2O3) Hillside (Cu, Au) *Kalkaroo (Cu-Au-Mo) *Menninnie Dam (Pb-Zn-Ag) Mutooroo (Cu-Co) Mutooroo (Fe2O3) Oban (U3O8) Olympic Dam Expansion (Cu-U-Au-Ag) Poochera (Kaolin) *Portia (Au) Project Magnet Phase 2 (Fe2O3) Razorback (Fe3O4) Samphire (U3O8) Tripitaka (HM) *Tunkillia (Au, Ag) Warramboo (Fe3O4) *Arckaringa (CTL) Beverley South (U3O8) *Bird-in-Hand (Au) Bramfield (Fe2O3) *Carrapateena (Cu-Au) Clinton (CTL) Crocker Well (U3O8) Flinders-Reliance (Zn) Four Mile(U308) FuturGas (CTL) Gum Flat (Fe2O3) Hawks Nest (Fe2O3) Hillside (Cu, Au) *Kalkaroo (Cu-Au-Mo) *Menninnie Dam (Pb-Zn-Ag) Mutooroo (Cu-Co) Mutooroo (Fe2O3) Oban (U3O8) Olympic Dam Expansion (Cu-U-Au-Ag) Poochera (Kaolin) *Portia (Au) Project Magnet Phase 2 (Fe2O3) Razorback (Fe3O4) Samphire (U3O8) Tripitaka (HM) *Tunkillia (Au, Ag) Warramboo (Fe3O4) Major Mines Major Projects 1.Olympic Dam 2.*Challenger 3.Beverley 4.Middleback Ranges 5.Leigh Creek 6.*Malu 7.*Angas 8.*Honeymoon 9.Jacinth- Ambrosia 10.Beltana 11.White Dam 12.Cairn Hill 13.Iron Chieftain 14.Ankata 15.Kanmantoo 16.Beverley North 17.Peculiar Knob 18.*Wilgerup 19.Wilcherry Hill 20.Mindarie Acropolis (Cu-U-Au-Ag) *Alvey (Pt, Pd) *Aphrodite (U3O8) Aristotle (Zn) Armchair (U3O8) Aroona 2 (Zn, Pb) Atacama (HM) *Baggy Green (Au) Bagot Well (Cu) Bald Hill Iron (Fe) *Barns (Au) *Barton West (HM) Becaroo (U3O8, REE) Big Lake 20 (U3O8) Big Lake 28 (U3O8) *Black Hills (Au) Blanchewater (U3O8) Blinman (Cu) *Blue Rose (Cu, Au) Bungalow (Fe3O4) Burra (Cu) Carrow (Fe) *Claude Hills (Ni) *Coolybring (Fe3O4) Deloraine (Au) *Dromedary (HM) *Emmie Bluff (Cu) Emmie North (Cu) Eurelia (Diamonds) Eurinilla Dome (Cu, Au) Flinders Island (Diamond) Giffen Well (Fe2O3) Glenrae (IOCG) Golf Bore (Au) Goulds Dam (U3O8) Greenpatch (Fe3O4) *Hercules (Fe3O4) Hicks Hill (Fe) Jamieson Tank (Mn) *Junction Dam (U3O8) *Jungle Dam (Ag, Au, Fe) *Kangaroo Dam (Pt, Pd, Au) Kenmore II (Ni, Cu) Kopi (Fe) Lady Jane (Au) Lilydale (Fe) Lock (Coal) Mainwood (Au) Malache (Zn, Pb) Maldorky (Fe) Melton (Cu, Au) Minbrie (Fe) Miranda (Cu) Mojave (HM) *Mongolata (Au) Monsoon (Au) *Moonta (Cu) Moorilyanna (Cu) Mount Brady (Fe, Cu, REE) *Mount Caroline (Ni, Cu, Pt, Pd) Mount Christie Siding (Cr2O3) Mount Cora (Fe) Mount Davies (Ni) Mount Distance (U3O8) *Mount Gunson (Cu, Co) Mount Torrens (Cu-U-Au-Ag) *Mount Woods (IOCGU) Mulyungarie (U3O8) Mutooroo Iron (Fe) Netherleigh Park (Cu) *Netley Hill (Cu, Mo) North Kalkaroo (Cu, Au) North Portia (Cu, Au) Notrab (HM) *Oakdale (Zn, Cu) Parara (IOCGU) Paris (Ag) *Parkinson Dam (Ag, Zn, Cu, Au) Pindari (Ni, Cr) Pollinga (Mn) Princess Royal (Cu) *Prospect Hill (Sn) *Pundinya (U3O8) Punt Hill (Cu, Au) Radium Hill (U3O8, Th, Ra) Sequoia (Fe, U3O8) Sheoak (Au, Ag) Shylock (Cu, Au) Skye (Au, Ag) Snaefell (Fe) Springfield (Diamond) *Stuart (IOCGU) Taurus (Pt, Pd, Cu) Telephone Dam (Pb, Zn) *Titan (Cu, Au) Tomahawk/Tunkillia area 191 (Au) Toondulya (Cu, Au) Torrens South JV (Cu, Au) Typhoon (Au) Typhoon (HM) Ultima Dam (Au, U3O8) Victory (U3O8, REE) *Vulcan (Cu, Au, U3O8) Weednanna (Pb, Zn, Ag, Cu, Au) Wheal Ellen (Zn, Pb, Ag) Willamulka (Cu, Au) Willy Willy (HM) Winjabbie East (Cu, REE) Wirrda (Cu, Au) * Yadglin (U3O8) Yanyarrie (Ba) Yarramba (U3O8) Zeus (Cu, Ni) Major Prospects * PACE Co-funded 20 mines 27 projects ~90 Major Prospects 12 Slide 13 New Mineral Discoveries in 2011/2012 13 Paris Prospect ( Highlights from Central Feeder Zone 7m at 1810 g/t Ag, 10m at 432 g/t Ag. Resource due in December 2012 Investigator Resources Sonoran Discovery ( 9km south of Jacinth Ambrosia. 2.2 Mt of HMS. Extends mine life by 10 years) Iluka Resources Campoona Graphite (Resource Drilling commenced in February. 21m at 15 % Carbon, 67m at 10.08% C, over 500 m strikelength} Archer Resources Paskeville Discovery ( 42m at 1.10 % Cu including 2.93%at 1.69% Cu) Adelaide Resources Melton Copper Gold Project ( 9 m at 1.03% Cu, Grades of silver up to 112g/t Ag) Marmota Energy Slide 14 Maiden Mineral Resource Announced 2011/2012 Minotaur Exploration Carey's Well Kaolinite - 16.3 Mt (meas.) bright white kaolinised granite yielding 8 Mt of -45micron kaolin within previously defined 47.2 Mt (inf.) of white to off-white kaolinised granite Perilya North Moolooloo: 214 000 t at 34.4% Zn (ASX release 10.6.11) Terramin Angus Sunter Deposit: 375 600 t at 3.8% Zn, 1.6% Pb, 15 g/t Ag Pb (ASX release 29.11.11) Marmota Energy Saffron (Junction Dam): 4.36 Mt at 437ppm U 3 O 8 (contains 1 510 t U 3 O 8 ) (ASX release 18.11.11) Western Plains Resources Peryhyn: 352.4 Mt sub bituminous Coal (ASX release 7.7.11) Lochiel North: 270 Mt Lignite coal (FY 2010 2011 Annual Report) IMX Resources Snaefell Project: 109.8Mt at 30.13% Fe (ASX release 12.10.11) OZ Minerals Carrapateena: 203 Mt at 1.31% Cu, 0.56 g/t Au, 270 ppm U, 6.0 g/t Ag (Carrapateena Mineral Resource Statement 14.4.11) Lincoln Minerals Gum Flat Iron ore: 1.8 Mt Hematite Indicated Resource at 50.5% Fe (45% Fe cut-off) including 0.9 Mt DSO hematite at 54.2% Fe (50% Fe cut-off) Havilah Resources Maldorky Iron Ore: Indicated Resource of 147Mt of 30.1% Fe at a cut-off grade of 18% Fe Centrex WISCO Eyre Iron JV Fusion Magnetite: 319.4 Mt at 20.1% Magnetite (ASX release 31.8.11) Bungalow: 103 Mt at 25.3% Magnetite (ASX release 10.5.11) Carrow: 159 Mt at 27.8 % Magnetite (ASX release 1.6.11) Sumitomo - Minotaur JV Mutooroo Magnetite: 1.5 Bt at 15.2% DTR magnetite (ASX release 24.11.11) 14 Slide 15 A Decade of Industry Growth 15 Mineral Production Value Net minerals industry value Capital expenditure Mineral exports Slide 16 16 Slide 17 SA Major Resource Projects 17 Slide 18 Future of Iron Ore in South Australia 18 Slide 19 Developments in the Braemar Province Proposed $7+ Billion Investment in major Iron Ore Projects 19 Slide 20 Major Mines, Projects and Ports Eyre Peninsula 20 Slide 21 Future of Iron Ore in South Australia 21 Slide 22 MINES *Olympic Dam: BHP-B *Malu (Prominent Hill Open Cut): Oz Minerals Ankata (Prominent Hill Underground): Oz Minerals Kanmantoo: Hillgrove Resources PROJECTS *Carrapateena: Oz Minerals Hillside: Rex Minerals *Kalkaroo: Havilah Resources Mutooroo: Havilah Resources Olympic Dam Expansion: BHP-B PROSPECTS North Portia : Havilah Resources Punt Hill: Monax * PACE Co-funded Copper Slide 23 Slide 24 Hillside Conceptual Pit Slide 25 Olympic Dam (1976) Prominent Hill (2001) Hillside (2009) Carrapateena (2006) Source: MinEx Consulting Feb 2010 Globally competitive in new Cu discoveries Slide 26 Olympic Dam Total Resource 9 129 Mt at 0.86% Cu, 0.027% U 3 O 8, 0.32 g/t Au and 1.48g/t Ag Total Ore Reserve 500 Mt at 1.84% Cu, 0.057% U 3 O 8, 0.76 g/t Au and 3.41 g/t Ag Prominent Hill Total Resource (including Ankata and Malu) 214.9 Mt at 1.23% Cu, 0.5 g/t Au, 2.8 g/t Ag Production 201011 (contained metal in concentrate) 105 751 t Cu, 191 708 oz Au, 530 568 oz Ag Carrapateena Inferred Resource 203 Mt at 1.31% Cu, 0.56 g/t Au, 6.0 Ag, 270 ppm U 3 O 8 Hillside Prospect Inferred Resource 330 Mt at 0.8% Cu equiv ( including 116 Mt at 1.2% Cu Equiv) Iron Oxide Copper Gold Deposits Slide 27 Tonnes & Grade for recent Discoveries Copper Deposits >0.5 Mt Cu-eq found 1999-2011 27 Grade (% Cu) Pre-Mined Resource (Mt of Ore) Source: MinEx Consulting March 2012 Copper Only Prominent Hill (289 Mt @ 1.01% Cu) Carrapateena (203 Mt @ 1.31% Cu) Hillside (217Mt @ 0.68% Cu) Kalkaroo (125 Mt @ 0.77% Cu) Weighted Average Size World 625 Mt @ 0.58% Cu = 3.65 Mt Cu South Aust 208 Mt @ 0.96% Cu = 2.00 Mt Cu Slide 28 Slide 29 SA Oil and Gas Factoids Cooper Basin JVs A$11 billion. Snowy Mountains scheme $8 billion at current prices. $164 billion of LNG projects under development. 63% of total resource sector investment. Australia will be worlds biggest LNG exporter by 2020. This will make Australia a global leader in three commodities, coal, iron ore and natural gas. Slide 30 South Australias Energy Portfolio Proven plays: Oil & gas Cooper-Eromanga & Otway Leigh Creek Coal Prospective plays : Oil & gas - Officer and Arckaringa basins Oil & gas - offshore Bight Basin Oil & gas - offshore Otway Basin Shale gas - Cooper and other basins Low K reservoir (tight) gas - Cooper Basin Coal seam gas - Eromanga Basin Underground coal gasification Arckaringa, Walloway Basins Coal mining - Arckaringa & Tertiary basins for power generation, syngas and synfuel Hot rock engineered geothermal systems (EGS) - eastern South Australia Hot (geothermal) sedimentary aquifers - eastern South Australia Slide 31 Slide 32 Slide 33 Slide 34 The development of unconventional gas is proving to be positively transformational for North American economies and Australia is a first mover in developing shallow coal seam gas as feedstock for liquefied natural gas (LNG) export. In addition, when developed to best practice standards for well integrity, gas is a much less carbon intensive (than coal) source of electricity supplies.... more than 20 companies/Joint Ventures are now focusing on exploring unconventional gas plays with giant discovery potential in South Australia. This is in addition to exploration for conventional oil and gas plays in proven producers and the States frontier basins. With such diversification, the chance at least one of these unconventional gas plays will lead to a major discovery is high.... Slide 35 SA Oil and Gas Factoids The interest in the Great Australian Bight by BP is also important. Australian oil production is falling and Australia needs to find a new oil basin. It might be offshore South Australia. Slide 36 36 DMITRE Bringing Resources & Energy portfolios together with Manufacturing Innovation & Trade Slide 37 37 Manufacturing in transition Hon Tom Koutsantonis MP Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business South Australia has a strong and proud history of manufacturing, which has been central to the well-being of South Australians since the 1940s. Today, South Australia is an economy in transition. Manufacturing has a crucial role to play in the transformation of our economy. We must ensure a strong manufacturing sector is front and centre in our future. Slide 38 38 Hon Tom Koutsantonis MP Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business The Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) brings together in one department the varied energy-related responsibilities of government. These include investment for and exploration of energy resources; the legislative and institutional framework for energy markets; delivery of energy services in remote areas; and South Australia's efforts in identifying and promoting renewable energy projects. ENERGY Managing South Australias energy business Slide 39 39 Invest SA established under the guidance of the Economic Development Board Slide 40 40 Hon Tom Koutsantonis MP Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business China is poised to be the largest economy in the world. More so than ever before, our States future is intimately linked to the growth of China, and will be influenced by how well we work with our friends in China to strengthen this partnership. I am keen to ensure that this Governments support is coordinated and aligned to assist the key business sectors to build stronger partnerships with China and grow this opportunity. Sean Keenihan President Australia China Business Council SA Branch Through participating in the development of the China Strategy, interested parties have the opportunity to: hear from industry and government opinion leaders on key opportunities participate in seminars led by industry and government opinion leaders covering emerging trends in China and market opportunities and challenges associated with the bilateral relationship contribute to the State Governments thinking on the priorities and challenges for the States engagement with China network with and develop contacts that will support your engagement with China and provide guidance on how to operate successfully in the Chinese market. Slide 41 41 Jay Weatherill Premier of South Australia India is important to South Australias future. Our States relationship with international partners will be vital to our economic growth and future prosperity and India is at the top of the list of the partners that can contribute most to South Australia. This paper seeks your input on: Which Indian states should South Australia target? Which industry sectors should be developed? Key commercial opportunities Processes to ensure relationships are developed and effective Critical initiatives in the areas of high-value manufacturing, resources services and technology, clean technology and knowledge intensive services. Slide 42 42 PACE 2020 Slide 43 Slide 44 Deep Exploration Technologies CRC DETCRC Partnership New Drill Testing and Training Facility Geochemical and alteration vectoring Development of 3D basin cover over Eastern Gawler IOCG province Hylogged holes within IOCG belt Hylogged holes intersecting basement Australian Copper Conference 2012 Slide 45 Mineral Potential Modelling Olympic Dam Carapateena IOCGU Potential Uses Exploration site selection Key Ingredients Mapping Mineral Potential Models 3D visualisation Slide 46 10x vertical exaggeration 10 km 2 km N Alteration Voxet 10 km Sericite Hematite Magnetite Hematite Magnetite K-Feldspar Albite Sericite Chlorite Chlorite 500 m x 500 m x 10 m cell size 3D Mineral Mapping of IOCGU deposits Slide 47 Frome Embayment TEMPEST AEM Collaboration with Geoscience Australia. Cost: $2.5M (PACE $0.25M). Northern Murray Basin to north of Flinders Ranges: 95 000 km2 total area, 25 000 line km Available for download www.ga.gov.au www.ga.gov.au Slide 48 GSSA PROJECTS Mapping salinity gradients using TEMPEST AEM: New insights into the formation of sand-hosted uranium deposits. Michaelsen, B. and Fabris, A. 1.delineates the broad architecture of the Poontana Trough 2.helps identify structures in the Beverley-Paralana area 3.delineates aquifers containing freshwater & saline water 4.provides vectors of aquifer flow 5.demonstrates that sand-hosted U deposits are located where fresh groundwater mixes with saline groundwater Slide 49 PROOF OF CONCEPT ONLY SOURCE-ROCK TARGETING OF IOCGU DEPOSITS Slide 50 50 Woomera Prohibited Area Coordination Office (WPACO) established In June 2011, regular meeting schedule 12 staff, primarily Canberra-based, multi-Agency representation including DMITRE, DefenceSA; Defence; Airforce-Test Range; RET; Finance & Deregulation One Stop Shop for non-Defence access to WPA WPACO website launched http://www.defence.gov.au/woomera/ http://www.defence.gov.au/woomera/ Access Zones defined and published on SARIG New PACE Gawler Craton project over WPA Opening up the Woomera Prohibited Area Slide 51 51 Exclusion Windows 2012-13 Calendar published Example: next exclusion period for Amber 2 (trajectory corridor) is 20 Aug to 2 Sept Industry Liaison Meetings established held every month in Adelaide Opportunity for one-on-one meetings with any party with interests in WPA Template Deed of Access for Exploration released for consultation Workshops held in Adelaide and Canberra Over 60 participants, 18 detailed written submissions DMITRE has resumed processing pending ELAs (two thirds of backlog processed) Opening up the Woomera Prohibited Area Slide 52 52 COMING SOON. New Woomera Geoscience Survey Program End to Moratorium on issuing Deeds of Access to new explorers Signing of the MOU which articulates co-existence principles, management protocols and consultative mechanisms Advisory Board with Independent Chair appointed Technical Reference Group with Industry representation established Inspection & Compliance capability rolled out (Air Force collaborating with DMITRE) Opening up the Woomera Prohibited Area Slide 53 Slide 54 54 PACE Mining on-line ELA approvals tracking under development Slide 55 New Tenement Status Widget Once Tenement Status is selected from the Main Menu Toolbox the new Tenement Status Widget appears on screen. Step 2: Client selects an available tenement map layer Selected tenement map layer automatically turns on in SARIG Current mouse action is changed to Tenement Status Step 3: Client Selects a tenement polygon New Tenement Status Widget Once Tenement Status is selected from the Main Menu Toolbox the new Tenement Status Widget appears on screen. Step 2: Client selects an available tenement map layer Selected tenement map layer automatically turns on in SARIG Current mouse action is changed to Tenement Status Step 3: Client Selects a tenement polygon Tenement Status Select Tenement Layer: The tenement status tool returns a list of current tenement layers where status information is available. New widget allows expansion of additional Tenements Tenement Applicant Status Report: The tenement applicant report will open a new tab displaying all applications for selected applicant. Tenement Application Report: Client selects the tenement map layer then accesses (ajax filtering) a list of applicants from TMS (Tenement Management System) to view a crystal web status report of all applications for selected applicant. Tenement Application Report: Client selects the tenement map layer then accesses (ajax filtering) a list of applicants from TMS (Tenement Management System) to view a crystal web status report of all applications for selected applicant. Slide 56 Status Results 2012/0043 Received & Validated Assessme nt Offer Receive d Licensed Granted Date Completed Date Started 21/09/2012 12/10/2012 02/11/201216/01/2013Target Completion20/07/2012 Applicant Report Application Status Report More Information 02/11/2012 01/07/2012 New Tenement Status Results Widget Once a tenement polygon is selected the selection will be highlighted in red and the new Status results widget appears on screen displaying: Status bar Basic information: Tenement File reference, Dates Help link to SARIG online help website (blue question mark) 3 buttons Application Status Report new tab opens to crystal web report of the selected application with all details Applicant Report new tab opens to crystal web report of all applications current for selected tenement - applicant More Information: Link to DMITRE website page, detailing the process and descriptions of the tenement status. New Tenement Status Results Widget Once a tenement polygon is selected the selection will be highlighted in red and the new Status results widget appears on screen displaying: Status bar Basic information: Tenement File reference, Dates Help link to SARIG online help website (blue question mark) 3 buttons Application Status Report new tab opens to crystal web report of the selected application with all details Applicant Report new tab opens to crystal web report of all applications current for selected tenement - applicant More Information: Link to DMITRE website page, detailing the process and descriptions of the tenement status. Selected Tenement Slide 57 57 Slide 58 Slide 59 Infrastructure 59 Slide 60 Infrastructure RESIC Demand Study DMITRE Case Management of Centrex-WISCO deep water port development - Port Spencer for iron ore exports. Flinders Ports consortium project at Port Bonython Flinders Ports Port Pirie options for bulk minerals export. Infrastructure is going to continue to need private sector support, and the government will work actively to alert investors to opportunities and to smooth the way to timely approvals for agreed projects. 60 Slide 61 Infrastructure 61 Slide 62 RESIC Resources and Energy Infrastructure Demand Study 62 Slide 63 $6 billion from 2010-11 to 2020-21 Includes $5.6B from Minerals Resource Rent Tax (MRRT) Stream 1: Commitments made in 2010 Stream 2: Regional Infrastructure Planning & Economic Infrastructure Projects $4m in 2011-12 $6m in 2012-13 for planning Stream 3: Part of Regional Development Australia Fund Guidelines have been recently released Regional Infrastructure Fund Slide 64 South Australia Regional Mining and Infrastructure Plans Three plans focussed on infrastructure planning to support mining Integrated across regions: Eyre and Western Far North Yorke and Mid North / Braemar Total $1.5m funding; $1.1-$1.3m for contractor funding Social, economic and environmental impacts June 2013 for final Plans Slide 65 CONCLUSION 30 600 1000 65