Mineral Resources Tasmania Annual Review 2007/2008 · Mineral Resources Tasmania Annual Review...
Transcript of Mineral Resources Tasmania Annual Review 2007/2008 · Mineral Resources Tasmania Annual Review...
A Division of the Department of
Infrastructure, Energy and Resources
Mineral Resources Tasmania
Annual Review
2007/2008
Mineral Resources TasmaniaDepartment of Infrastructure, Energy and Resources
Mineral Resources Tasmania PO Box 56 Rosny Park Tasmania 7018
Phone: (03) 6233 8377 l Fax: (03) 6233 8338
Email: [email protected] l Internet: www.mrt.tas.gov.au
Mineral Resources Tasmania Annual Review 2007/2008
2
Mineral Resources Tasmania
Mineral Resources Tasmania (MRT) is a Division of the Department of Infrastructure, Energy and Resources (DIER). It
is Tasmania’s corporate entity for geoscientific data, information and knowledge, and consists of a multi-tasking group
of people with a wide range of specialist experience.
The role of MRT is to ensure that Tasmania’s mineral resources and infrastructure development are managed in a
sustainable way now, and for future generations, in accordance with present Government Policy, Partnership
Agreements and goals of Tasmania Together.
— Mission —
! To contribute to the economic development of Tasmania by providing the necessary geoscientific information and
services to foster mineral resource and infrastructure development and responsible land management for the
benefit of the Tasmanian community
— Objectives —
! Benefit the Tasmanian community by an effective and co-ordinated government approach to mineral resources,
infrastructure development and land management.
! Maximise the opportunities for community growth by providing timely and relevant geoscientific information for
integration with other government systems.
! Optimise the operational performance of MRT by developing the organisational structure to support the
whole-of-government business processes.
— Activities —
Activities within the Division include:
! collection, integration, interpretation, publication and presentation of geoscientific information;
! collection, integration, interpretation, publication and presentation of information on Tasmania’s geohazards;
! regulation of mineral and petroleum exploration and development in Tasmania, including offshore waters
administered by the State, and the promotion of vacant areas available for onshore and offshore exploration;
! setting and monitoring of standards for both the performance of exploration activities and the technical reporting
of exploration records and case histories;
! environmental appraisal, monitoring and management of mining heritage and land access issues; and
! issue of legal titles for mining tenements, collation and recording of statistics relating to mining production,
collection of fees and rentals, management of royalty regimes, and recording of mining tenements.
— Major issues and initiatives for 2008/2009 —
! Continuation of the four-year TasExplore geoscientific data and promotion initiative, following acquisition of
aeromagnetic and radiometric data over northeast Tasmania and the Furneaux Group, with geological data
acquisition in northeast Tasmania to upgrade the geological interpretation for input to the 3-D geological model.
! The second stage of the gravity survey in northeast Tasmania will be completed. Production of geological maps
covering central northern Tasmania following the geological mapping program of the previous year.
! Continue updating data for the Tasmanian Information on Geoscience and Exploration Resources (TIGER) System.
! Undertake a series of promotional activities to encourage mineral exploration in Tasmania, including the promotion
of the three-dimensional model of geological structure and major mineralising pathways of Tasmania.
! Produce land stability maps of urban areas in Tasmania, in line with the guidelines developed following the Thredbo
disaster.
! Continue rehabilitation of abandoned mining sites in Tasmania.
Mineral Resources Tasmania Annual Review 2007/2008
3
Contents
Mineral Resources Tasmania — Divisional Overview … … … … … … … … … … … … … 5
Financial performance … … … … … … … … … … … … … … … … … … … … … … … … 10
Review of MRT Branch Activities, 2007/2008 … … … … … … … … … … … … … … … … 13
Metallic Minerals and Geochemistry … … … … … … … … … … … … … … … … … … … 13
Industrial Minerals and Land Management … … … … … … … … … … … … … … … … … … 16
Hydrocarbons … … … … … … … … … … … … … … … … … … … … … … … … … … 16
Environment, Land Management and Industrial Minerals … … … … … … … … … … … … … 18
Urban Geology … … … … … … … … … … … … … … … … … … … … … … … … … 20
Registry … … … … … … … … … … … … … … … … … … … … … … … … … … … 21
Information Systems and Geophysics … … … … … … … … … … … … … … … … … … … 24
Data Management … … … … … … … … … … … … … … … … … … … … … … … … … 27
Finance, Royalty and Administration … … … … … … … … … … … … … … … … … … … 27
Publications … … … … … … … … … … … … … … … … … … … … … … … … … … 27
Library … … … … … … … … … … … … … … … … … … … … … … … … … … … … 28
Mineral Sector Overview… … … … … … … … … … … … … … … … … … … … … … … 31
Value of the Tasmanian mineral industry … … … … … … … … … … … … … … … … … … 33
Mineral exploration expenditure … … … … … … … … … … … … … … … … … … … … 35
Commodity prices … … … … … … … … … … … … … … … … … … … … … … … … … 36
Review of Mineral Sector Operations … … … … … … … … … … … … … … … … … … 37
Metallic minerals … … … … … … … … … … … … … … … … … … … … … … … … … 40
Industrial minerals … … … … … … … … … … … … … … … … … … … … … … … … … 47
Fuel minerals… … … … … … … … … … … … … … … … … … … … … … … … … … … 48
Construction materials … … … … … … … … … … … … … … … … … … … … … … … 49
Mineral processing operations … … … … … … … … … … … … … … … … … … … … … 52
Annual Report, Rehabilitation of Mining Lands Trust Fund… … … … … … … … … … … 53
Mineral Resources Tasmania Annual Review 2007/2008
4
Management of Mineral Resources Tasmania
(as at 30 June 2008)
Director, Mineral Resources Tasmania and State Chief Geologist —
Dr A. (Tony) V. Brown
Telephone: (03) 6233 8365; Email: [email protected]
Managing Geologist (Metallic Minerals and Geochemistry) —
Dr Geoffrey R. Green
Telephone: (03) 6233 8335; Email: [email protected]
Managing Geologist (Industrial Minerals and Land Management) —
Ms Carol A. Bacon
Telephone: (03) 6233 8326; Email: [email protected]
Manager, Information Systems and Geophysics —
Dr Robert G. Richardson
Telephone: (03) 6233 8324; Email: [email protected]
Manager, Royalty, Finance and Administration —
Mr Matthew N. Fitzgerald
Telephone: (03) 6233 8370; Email: [email protected]
Manager, Data Management —
Mr Ken G. Bird
Telephone: (03) 6233 8351; Email: [email protected]
Mineral Resources Tasmania Annual Review 2007/2008
5
Divisional overview, 2007/2008
As in previous years the mineralextraction and processing sectorcontinues to be Tasmania’s largestexport industry. In 2007/2008 thesector accounted for 53% of mercantile exports ($2.8 billion), up from 49.4%the previous year.
Mineral Resources Tasmania, byproviding information on theprospectivity and high mineral resource potential in Tasmania, encouragesprivate sector exploration which weanticipate will lead to new operationscoming on stream as the economic lifeof existing operations declines. Byensuring an adequate return from ourmineral resources, all Tasmanians canshare the benefits of our mineralwealth.
The mining industry in Tasmaniaagain benefited from continuing strongmetal prices during the year. At thetime of writing the outlook for2008/2009 is positive and there is anexpectation that commodity prices willgenerally remain strong. Royaltyrevenue collected for the State byMRT in 2007/2008 reached a record$41.4 million.
As mentioned in last year’soverview, ‘perception’ is a wonderfulconcept that allows all kinds ofmisconceptions to occur in the face ofcounter facts. During 2007/2008 aproactive campaign was undertaken byMRT staff at national and internationalsymposia and conferences in anattempt to dispel the negativeperceptions and misconceptions aboutundertaking mineral exploration andmining in Tasmania. These negativeperceptions continue to be recorded in the Fraser Institute annual survey (asmentioned in last year’s overview) andby resource stocks.
Even with further promotion anddisclaimers, the latest Fraser Institutesurvey still records the perception ofcompanies that Tasmania has‘uncertainty concerning native landclaims’ despite the fact that it has beenstated in numerous forums onnumerous occasions that it is highlyunlikely that a native title claim couldsucceed in Tasmania.
There is increasing importance and a rising level of investment in Australianresource projects by major smeltingand refining companies in major metalconsuming countries such as China,Japan, Korea and, increasingly, India.These companies have historicallyrestricted investment in Australia toadvanced-stage mining projects but are
increasingly making investments at anearlier stage in projects, with someentering into exploration joint ventures with Australian companies.
Face-to-face meetings with globalexplorers are great opportunities toexplain the new government initiatives,give examples of new data acquired todate, explain how to access theinformation and demonstrate it on line, as well as discuss new discoveries andmineral projects and promoteTasmania as a positive place for mineral exploration and project developmentand to negate the negative perceptions.
During the year MRT officersattended Mining 2007 in Brisbane inlate October 2007; China Mining 2007in Beijing in November 2007; anAustralian Mineral ExplorationInvestment Seminar in Tokyo duringFebruary 2008; the World MinesMinisters Forum and the Prospectorsand Developers Association of CanadaConvention (PDAC) in Toronto during March 2008, as well as meetings withmineral companies in Australia, Canada and Europe associated with the aboveconferences.
The Tasmanian delegationparticipated with delegates from allother Australian governments as TeamAustralia. This is an important part ofthe promotional program endorsed bythe Ministerial Council on Mineral andPetroleum Resources and coordinatedthrough the Chief GovernmentGeologists Committee.
The objective of the combinedAustralian governments promotingmineral exploration investment inAustralia is to encourage and enhancemineral exploration and discovery, with each jurisdiction focussing on their own State/Territory and GeoscienceAustralia providing an Australia-wideoverview. This will allow for thediscovery and development ofeconomic mineral deposits at worldcompetitive costs, and will dispelperceptions that Australia is a matureexploration province and has numerous other negative reasons for companiesnot to explore here.
The strategy also emphasises theimportance of tailoring geoscientificand tenement information and data tomeet the needs of potential investors,and of taking full advantage of theinternet in information dissemination.
The events in both Tokyo andToronto were organised through Team Australia, with representatives from all
Federal, State and Territory GeologicalSurveys/Mines Departments, whichgives Australian exploration potential,and its stable political and economicframework, a credible and visiblepresence. The Australian pavilion atPDAC is always admired and visited byboth explorers and other governmentagencies.
The Australian Mineral ExplorationInvestment Seminar, held in Tokyo,Japan on 26 February 2008, wascoordinated by the AustralianGovernment’s Geoscience Australiaand Invest Australia, the AustralianEmbassy, Tokyo, and the Japan Oil, Gas and Metals National Corporation. Theseminar was undertaken by TeamAustralia en-route to the Prospectorsand Developers Association of Canadainternational minerals conference inToronto, Canada.
This year’s PDAC Conference andTrade Show attracted a recordattendance of 20,162 registrants fromover 100 countries and comprised1001 booths. The Trade Show totalled360 exhibits including those bygovernment agencies from 36 countries (27 in 2007), with additional exhibitsfrom individual Canadian provinces and USA states. The Investors Exchangefeatured in excess of 640 exhibitors.
The Tasmanian booth, within theAustralian Pavilion, was extremely busy (as were the booths of otherjurisdictions). The main questionsasked at the booth were about newdiscoveries, access to land forexploration, new geoscientificinformation and how to access it, anduranium policy and uranium potential.Time was also taken to visit othercompany and government booths,formal and informal meetings, andnetworking.
The Tasmanian Government shouldsee signs of the benefit of this travel aswe gain more investment from Japanand China, and more involvement byCanadian and North Americanexploration and mining companies over the next four to five years. Face-to-face discussions, relationship building, andinformation exchange were key partsof our promotional activities at theseevents.
The year in review
Allegiance Mining NL furtherdeveloped the Avebury nickel mine,with the first concentrate produced inJuly 2008 and the first shipmentexpected the following month. During
Mineral Resources Tasmania Annual Review 2007/2008
6
the year, Allegiance was the subject ofa successful takeover by ZinifexLimited (now OZ Minerals Ltd) whichwas finalised on 18 July 2008. Recentdrill intersections in the East Aveburyarea indicate that further growth in the Avebury resource is likely.
Exploration to further extendresources continued at the ZinifexLimited Rosebery mine, and feasibilitystudies into potential expansion ofsurface infrastructure and constructionof a new tailings dam commenced. Theobjective is to extend the life of themine beyond 2030 at current miningrates.
Bass Metals Ltd delivered the firstore from the Que River mine toRosebery in August 2007 and at year’send had established a profitableoperation, with over 37 500 tonnes ofore delivered during the year.
Stemcor has sold 90% of AustralianBulk Minerals to a consortium ofChinese companies, headed by theShagang Group. The open-cut mine atSavage River is being expanded with aview to extending mine life by at least25 years.
King Island Scheelite Limited hascompleted negotiations with the Hunan Nonferrous Metals Corporation tocommence the redevelopment of theGrassy scheelite mine and at year’s end was awaiting approval from theChinese Government, the finalcondition to be satisfied.
Metals X Limited commencedmining tin ore at Mount Bischoff andreopened the Renison Bell mine in July2008. For the first time, copper will beproduced from the mine from theSeptember 2008 quarter, as well as tin.A feasibility study into recovering tinand copper from the Renison Belltailings dam continued to yield positiveresults and work has progressed todetailed design stage.
Exploration programs continued atthe Mount Lyell and Henty mines.
Mining rates at the Beaconsfield gold mine have reached the levels achievedprior to the April 2006 rock fall. Aprogram of accelerated explorationwas due to commence in the mine andin the Beaconsfield area, andexploration tenement packages weresecured in the Lefroy and Mathinnaareas.
Van Dieman Mines plc is developingits alluvial tin, sapphire, gold and spinelmine at the Scotia deposit nearGladstone and expects to commenceproduction in the December 2008quarter.
Cominex Pty Ltd and SumitomoAustralia Ltd have transferred the silica flour tenements in northwest Tasmania to Tasmanian Advanced Minerals PtyLtd. The new company has recentlyreceived Level II permits to allow theextraction of 50 000 cubic metres ayear at the Corinna and newBlackwater mines. Tasmanian Advanced Minerals Pty Ltd completed theconstruction of a silica flour treatmentplant near Wynyard.
The Thylacine and Yolla gasfields are both in Tasmanian offshore waters.Thylacine commenced production inSeptember 2007, while Yolla beganproduction in October 2006. The gasfrom both these fields is piped toVictoria. Installation of the Thylacineplatform and development drilling,including a deviated exploration well,began in late 2005. The deviatedexploration well was successful,resulting in a development well andsubsequent production licenceapplication which was granted inNovember 2006.
The new Commonwealth OffshorePetroleum Act 2006 will be proclaimedon 1 July 2008. This Act will replacethe Petroleum (Submerged Lands) Act1967. Tasmania finalised itsamendments to the mirror legislationand four sets of Regulations on 16 June 2008.
MRT initiatives
The major initiatives and issuesaffecting MRT in 2007/2008 included:
! Continuation of the four-yearTasExplore geoscientific data andpromotion initiative, with acquisition of aeromagnetic and radiometricdata over northeast Tasmania andthe Furneaux Group, and geologicaldata acquisition in central northernTasmania to upgrade old geologicalinterpretation, especially wherediscrepancies with the 3-Dgeological model were noted. Allairborne geophysical datasets andassociated interpretation reportshave been released. The first stageof the gravity survey in northeastTasmania has been completed. Newgeological mapping in centralnorthern Tasmania has beencompleted, compiled and submittedfor map production.
! Enhancing the provision ofgeoscientific data through theTasmanian Information onGeoscience and ExplorationResources (TIGER) System.
! Undertaking a series of promotionalactivities to further encourage the
upsurge in mineral exploration inTasmania.
! Provision of an appropriate level ofresources for environmentalmonitoring of exploration andmining tenements, and for inspection of mines and quarries.
The major issues and initiatives for2008/2009 are to:
! Continue work on the TasExploregeoscientific data initiative throughundertaking the second stage of theground gravity survey in northeastTasmania and commencement ofupgrading of the geological mappingand interpretation of northeastTasmania and King Island. This willenhance the information available inthe three-dimensional model overareas in northeast and northwestTasmania.
! Continue updating data for theTasmanian Information onGeoscience and ExplorationResources (TIGER) System.
! Undertake a series of promotionalactivities to encourage mineralexploration in Tasmania, includingthe promotion of thethree-dimensional model ofgeological structure and majormineralising pathways of Tasmania.
! Produce land stability maps of urbanareas in Tasmania, in line with theguidelines developed following theThredbo disaster.
! Continue rehabilitation ofabandoned mining sites in Tasmania.
Achievements againststrategies identified for2007/2008
New initiatives to stimulatemineral exploration in Tasmania
According to Australian Bureau ofStatistics (ABS) data, expenditure onmineral exploration for the 2007calendar year was $27.4 million, down1% from the previous year. Tasmania’sshare of Australian explorationexpenditure was 1.47%, down from1.9%. ABS data show that $9.8 million,or 35% of total expenditure, was spenton the search for new deposits.
During the year, an ABS out-postedofficer conducted a project to updateand provide much more rigour toMRT’s methodology for collectingmineral exploration statistics. Using the new methodology, MRT data indicatethat the ABS still significantlyunder-reports Tasmanian explorationexpenditure, as the MRT figure forcalendar year 2007 was $38.12 million
Mineral Resources Tasmania Annual Review 2007/2008
7
of which $18.53 million or 48.6% of the total was spent of exploration licences.
Promotion of mineral andpetroleum potential
! The Tasmanian Governmentprovided $240,000 in 2007/2008 toactively market mineral explorationopportunities in Tasmania. Activities undertaken included presentation ofa paper and holding a display at theworld’s leading exploration forum,the Annual Meeting of theProspectors and DevelopersAssociation of Canada (PDAC) inToronto and visiting leadinginternational mining companies inTokyo, Vancouver, Toronto, andLondon, both as part of theintegrated Australian Federal/State/NT government promotionalteam and as a separate Tasmaniangroup.
! Several meetings were also held with companies on a one-on-one basis. In addition to the PDAC meeting,displays were presented at theMining 2007 meeting in Brisbane inOctober.
! Presentations were made at theMining 2007 meeting, to a groupfrom Fujian province in November,to a visiting private sector groupfrom China in January, to theTasmanian Minerals CouncilExploration Group Meeting atLaunceston in May, and to theCanadian Consul General in June.
! Regular two-monthly updates onexploration progress in Tasmaniawere provided to the internationalSociety of Economic Geologistsnewsletter as part of a global review of mineral exploration.
! Promotional missions and functionswere conducted in Perth, Sydney,Brisbane, Melbourne and Adelaide.During these visits, there wascontinued strong positive feedbackon the mineral potential,infrastructure and business climatein Tasmania, as well as thegeoscientific programs conducted by MRT. These promotions have beensuccessful and continue to play adirect part in attracting newexploration companies to Tasmania.
! The buoyancy of the explorationsector is demonstrated through such advances as the announcement of an iron ore resource at Mount Lindsaynorth of Renison Bell by VentureMinerals Limited, new zinc-leadexploration projects by Bass MetalsLtd at the Fossey zone at thesouthern end of the Hellyer ore
body, and by OZ Minerals Ltd at the Jupiter prospect south of Rosebery,and studies into the potentialdevelopment of a nickel lateriteresource near Beaconsfield by Proto Resources and Investments Limited.
! The boom in petroleum explorationand development offshore is awelcome adjunct to the growth inmineral exploration and investmentonshore. Gas is produced from theYolla gas field in Bass Strait and theThylacine gas field in the OtwayBasin west of King Island and isprocessed onshore in Victoria.
! One new offshore petroleumexploration permit was granted,bringing the total number of permits in Commonwealth waters tonineteen. Nine seismic surveys were completed during the year. Offshore exploration expenditure amountedto $76 million.
! Aeromagnetic data were collectedover the offshore Bass and Otwaybasins as a joint project withGeoscience Australia.
Collection, integration,interpretation, publication andpresentation of data
As in previous years verification,upgrading and loading of informationinto the TIGER System continued. TheTIGER System has a single geosciencedata model with user interfaces forgeohazards, geophysics, drilling, mineral deposits, samples and geochemistry.Once loaded, the information is madeavailable to clients using the MRTwebsite. Other information availableincludes mineral tenements anddocuments held by MRT, and generalinformation for MRT and DIER clients.
The volume of downloads from theMRT website totalled of 2538 gigabytes compared to a total of 4426 gigabytesin the previous year and reflects, to alarge part, more mature search engineindexing of the site. The peak of 391gigabytes was downloaded in July 2007. Development and maintenance of theTIGER System was successfully carriedout using a combination of contractorsand MRT staff. In addition to data being accessed from the MRT website, 185data packages were distributed on CDto clients.
The collection and presentation ofinformation on Tasmania’s mineralwealth and geoscientific naturecontinues. The major task wascompletion of compilation of newmapping in central northern Tasmaniacarried out as part of the TasExploreinitiative. The field work resulted in
significant changes to ten tiles(Stowport, Ulverstone, Riana, Kindred,Latrobe, Loyetea, Castra, Railton,Sheffield and Liena) and changes toeight others (Loongana, Wilmot, Lea,Cethana, Gog, Deloraine, Pencil Pineand Montana) resulting from regionalgeological interpretation. The workprovided better correlation betweenunits of the Mount Read Volcanics inthe region with those in themineralised belt of western Tasmaniaand will provide a firmer basis formineral exploration. Two other1:25 000 scale map tiles (Gordonvaleand Tiger) were prepared for digitalcapture during the year.
Field work for the TasExplore project commenced in northeast Tasmania. Ateam of six geologists was assigned tomap in the region, with anothergeologist commencing work on thefirst detailed government mapping onKing Island. Field work on this projectwill continue in 2008/2009.
Data capture/output was completedfor seven of the TasExplore initiativemap tiles in central northern Tasmania(Castra, Deloraine, Kindred, Latrobe,Montana, Sheffield and Stowport) withcapture/output commencing on afurther nine map tiles (Lea, Liena,Loongana, Loyetea, Pencil Pine, Railton, Riana, Ulverstone and Wilmot).
Data capture/output was completedfor twelve 1:25 000 scale map tiles inother parts of Tasmania (BlackmansBay, Blessington, Collinsvale, Elliott,McPartlan, Mulcahy, Nunamara,Patersonia, Roys, Solitary, Strathgordon and Wings).
New aeromagnetic and radiometricdata for northeast Tasmania werereleased in December and threeinterpretive reports were released inFebruary. The geophysical data areproviding a firm basis for the geologicalmapping team.
A report on the petrology of rocksfrom the Savage River iron deposit was completed during the year andprovides a new understanding of theorigin of the deposit. The project willconclude with an examination of thegeochemistry of the deposit. This work will have important implications forfuture exploration of the ArthurLineament of northwest Tasmania.
A revised edition of the Catalogue ofMinerals of Tasmania, the first in someforty years, was completed during theyear and submitted for publication in2008/2009.
A project verifying data onTasmania’s mineral deposits andlocations was suspended when 98.5%
Mineral Resources Tasmania Annual Review 2007/2008
8
complete due to termination of atemporary employee after themaximum permissible period of service. The work will be completed in2008/2009.
Land instability is a significant hazard in Tasmania, with many homes havingbeen destroyed over the years andsignificant damage caused toinfrastructure. By studying andunderstanding the landslide hazard it isoften possible to minimise or avoid the effects of land instability. MRT isactively addressing this hazard in threemain areas; hazard mapping, databasesand monitoring.
A regional landslide hazardassessment of the North West Coastarea is underway, with maps of theLaunceston, Hobart and Glenorchyareas having been completed inprevious years. Funding assistance from the Australian and Tasmaniangovernments through the NaturalDisaster Mitigation Programme(NDMP) has supported this project.The resultant landslide maps areassisting councils to make informeddecisions on planning and developmentissues, especially given the pressure todevelop marginal lands around ourcities. The information has also beensupplied to other stakeholders,including the geotechnical communityand the State Emergency Services’Emergency GIS project.
A debris flow validation project andrisk assessment, involving nationallyrecognised landslide experts andfunded by the NDMP, has beencompleted for the Wellington Rangearea. This project largely confirmed the mapping approach by MRT and hasoffered suggestions for further work.
The TIGER landslide database formsa critical data foundation for thelandslide project. MRT, in collaboration with Geoscience Australia, has built aninternet facility linking various landslidedatabases throughout the country.There are currently over 2000 recordsin the database, a number of whichwere added from Forest PracticesAuthority records during the year.
MRT continues to liaise on aninformal basis with stakeholders inregard to land stability issues. It hascollaborated with Geoscience Australia in the writing of a chapter on landslides as part of a national review documenton natural hazards in Australia.
Historically, MRT has monitored anumber of active landslides in Tasmania that have affected roads, railways andsubdivisions. Most of these monitoringnetworks have been abandoned with
the exception of the Taroona landslide(Hobart) and the Lawrence Valelandslide (Launceston) networks. MRTwas awarded funds through the NDMPto install a near real-time monitoringfacility for the Taroona landslide inHobart. This will enable a betterunderstanding of landslide performance with regard to rainfall and groundwater that in turn will be of benefit tostakeholders by allowing improved riskmanagement options. The facility,designed and serviced by the University of Wollongong, is nearing completion.
MRT is coordinating a project in theHobart area, funded through theNDMP, to determine whetherpalaeotsunamis have affected the areaduring the last 10 000 years. Theinformation is important if the risk oftsunami is to be estimated. Most of thework is being contracted externally and involves collaboration with Geoscience Australia and use of their inundationmodelling facility. A report oninvestigations for palaeotsunami hasbeen completed and research intohistorical records on Tasmanianreports advanced. Project funds havecontributed to the acquisition ofairborne laser scanning data in order to improve the quality of the forthcominginundation modelling.
Setting and monitoring ofstandards for explorationactivities
MRT is responsible for ensuring that all exploration activity in Tasmaniaachieves the highest environmentalstandards and complies with theMineral Resources Development Act 1995and the requirements of otherlegislation which protects, for example, threatened species and culturalheritage.
The Mineral Exploration Code ofPractice outlines the currentrequirements, the approvals process,and the controls and monitoringprocedures that MRT has in place. TheCode is currently under review toensure that consistency is maintainedwith the Tasmanian ReserveManagement Code of Practice.
During the year 96 explorationwork programs were submitted toMRT, compared to 86 in the previousyear. Of these programs 74 wereapproved, 20 of which were in reserves derived from the Regional ForestAgreement (RFA) and requiredassessment by the Mineral ExplorationWorking Group.
To comply with the RFA, MRT hasdeveloped a system to spatially recordexploration activity and attributes that
chart the process of approval ofindividual work programs. All workprograms, whether on Crown land,State Forest or private property, areentered into this system to give acomplete record of all theenvironmental information relating toexploration.
Development of the upgradedsystem has been completed. Thissystem provides an integrated textualand spatial environment to ensure thatindependent compliance auditing of the exploration work approval system isadhered to and that derived statisticsreflect the requirements of the RFAand the recommendations of theResource Planning and DevelopmentCommission.
Mining Leases
The Mineral Resources DevelopmentAct 1995 provides for the State togrant titles for the extraction ofminerals from mines and quarries.Titles are issued for larger scaleoperations with appropriaterehabilitation bonds and conditions.Shorter terms are preferred forsmall-scale remote operations toprovide for regular environmentalreview.
At the end of 2007/2008 there were 621 mining leases in force. A total of 46 new leases and 76 lease renewals wereapplied for during 2007/2008. This took the overall total of applications andrenewals currently being processed to235.
Mining development continuedduring the year, requiring assessmentand approval of several operations. The largest scale development was atSavage River, where Australian BulkMinerals, in agreement with its newowner Shagang Group, commenceddevelopment of North Pit. Thisrequired replacement of the miningfleet, new workshops, and repairs tothe Savage River crossings which wereseverely damaged by flash flooding.
At Hellyer, the Polymetals PtyLtd–Intec Ltd joint venture gainedapproval for zinc leaching from tailingsretreatment and electric-arc furnacedust, with the import of dustcommencing. Open-cut redevelopment of the former Que River mine by BassMetals Ltd commenced and regularshipments of ore were made toRosebery for treatment. Metals XLimited commenced mining at MountBischoff following permit approval, with the tin ore being transported toRenison Bell for treatment. Operations at the Beaconsfield gold mine weresuspended following a rock fall in April
Mineral Resources Tasmania Annual Review 2007/2008
9
2006. Approval to recommence miningwas granted in stages until fullproduction was achieved. Mining torecover alluvial tin commenced atScotia near Gladstone, whiledevelopment of a new mine on theFenton Seam at Mount Nicholas by theCornwall Coal Company is underway.
Town planning can be an importantconstraint on the development ofextractive operations. Submissions,representations and appeals have beenmade to the West Tamar, CentralCoast, Clarence and Meander Valleycouncils concerning planning schemesor development applications. A longrunning appeal over the Tolosa Streetquarry in Glenorchy was attended. The most important representation was tothe Northern Midlands Councilconcerning a proposed residentialdevelopment adjacent to three quarries at Western Junction.
Following the successful applicationby MRT for rezoning under theClarence Planning Scheme during2006/2007, Sanbar Pty Ltd obtainedpermit approval at Seven Mile Beachand commenced sand extraction to
supply the southern constructionindustry.
Alleged illegal mining wasinvestigated at Sandford, Wivenhoe,and at Circular Head.
Royalty assessment
MRT is responsible for thecollection of mineral royalties fromCrown land tenements. Royalty is not a tax but a payment to the communityfor the purchase of theirnon-renewable resources.
Mineral royalties totalling $41.4million were collected for the2007/2008 financial year which was afurther significant increase over the$33.8 million collected in the2006/2007 financial year. Mineralroyalty collections have increasednearly ten-fold since 2002/2003. Theincrease in royalty revenues is theresult of the sustained commodityprice boom and the resulting highprofitability of most of the major mines in Tasmania.
The reasons for the commodityprice increases are well documented,with high commodity demand fromChina and India resulting in strong
prices. These higher prices areexpected to continue through2008/2009.
Rehabilitation of Mining LandsTrust Fund
The major focus of activity during2007/2008 was shaft safety, withtwenty-one mine shafts at Pipers Riverand Lefroy being either capped orfenced to provide for public safety.Minor safety programs were alsocarried out at Warrentinna, Waratah,Gladstone and Royal George.Revegetation programs were carriedout at Storys Creek and the Argonautmine at St Helens. Weed control wascontinued at Queensberry, PunchsTerror at Dunorlan, and The Badgersat Sheffield. Other minor worksincluded drainage improvements atStorys Creek and the Oonah mine atZeehan, and water quality monitoringat Luina and Royal George. A total of$170,050 was spent on trust fundprojects during 2007/2008.
Dr A V (Tony) Brown
Director, Mineral Resources
Tasmania and State Chief Geologist
Mineral Resources Tasmania Annual Review 2007/2008
10
Financial Performance
The 2007/2008 consolidated fundappropriation to Mineral ResourcesTasmania was $6.84 million. Thisfunding consisted of:
! $3.97 million for salaries for 53.8full-time-equivalent staff, plus twotemporary staff;
! $1.77 million for operatingexpenditure, including rent;
! $0.16 million for the Restoration ofDegraded Mineral Lands;
! $0.24 million for the promotion ofTasmanian mineral opportunities;and
! $0.70 million for the second year ofthe project for updating TIGER andthe 3D model, which includesfunding for three temporary staff.
In 2006/2007 MRT was funded $5.06 million over four years under ElectionCommitment funds to undertake asignificant promotional program andfor the acquisition of new data forupdating TIGER and the 3D geologicalmodel.
There were no significant variancesin funding between 2006/2007 and2007/2008 with the exception of theElection Commitment funding whichdecreased as planned in 2007/2008with the completion of the dataacquisition flying program in theprevious year.
Commonwealth Natural DisasterMitigation Programme funds werereceived to continue the TasmanianLandslide Mapping Program ($102,240). Funds were also carried forward from2006/2007 for the landslide project($28,436), for a project to investigation the occurrence of palaeotsunamis inthe Hobart area ($50,361), and forreal-time monitoring of the Taroonalandslide ($59,646).
Outputs — Application offunds, 2007/2008
Tasmanian government agencies arefunded on an outputs basis. Theoutputs represent the goods andservices delivered by MRT, and thecost of delivering those services. Thegovernment purchases these goods and services to meet policy objectives. Thetotal output figure does not equal theconsolidated fund appropriationavailable to the division due tooverheads associated with head officeand carry forward funds that areloaded into outputs.
MRT has two outputs:
Descriptions of Outputs andOutcomes, 2007/2008
1. Minerals exploration and landmanagement
This output covers:
! the provision of geoscientific dataand resource information onTasmania’s metallic, industrial andhydrocarbon mineral endowment;
! the promotion of mineral potentialfor the stimulation of explorationfor metallic and industrial mineralsand hydrocarbons; and
! geoscientific database development,maintenance, output and marketing,including the production of digitalgeoscientific maps and associateddatabases.
The outcome achieved is dynamicminerals exploration and landmanagement for Tasmania and offshore waters.
2. Tenement managementof the exploration and mineralsindustry
This output provides for:
! the provision of geoscientificinformation essential for theeffective and sustainablemanagement of land and mineralresources;
! the provision of advice to all levelsof government and the public onland management issues;
! the administration of mininglegislation, including the issue of legal titles for mineral tenements;
! the collation and recording ofstatistics relating to miningproduction and exploration; and
! the audit and monitoring of fee,rental and royalty collection.
The outcome is effective andefficient tenement management of theexploration and minerals industry.
Revenue from feesand charges
Mineral Resources Tasmania collects royalties and rents and fees frommineral lands. These revenues areforwarded directly to consolidatedrevenue and are not available to MRT,except for offshore petroleumrevenues which are utilised toadminister the Petroleum (SubmergedLands) Act 1967.
Mineral royalties totalling $41.4million were collected during the2007/2008 financial year, a significantincrease from the $33.8 millioncollected in 2006/2007 and continuingthe upward trend of previous years($24.0 million in 2005/2006).Commodity prices in general rose torecord levels throughout 2007/2008.The increase was the result of thecontinued strong demand forcommodities from China and India. The Tasmanian royalty regime is structuredso that companies pay a greater royalty in profitable times.
The operations of individual minesare detailed later in this review.
Mineral Resources Tasmania alsocollects rents and fees from minerallands, which are forwarded directly toconsolidated revenue. Rents and feesfrom mineral lands raised $1.429million in 2007/2008, which was wellabove budget expectation and reflectsthe increased mining activity inTasmania.
Output $’000
1. Minerals exploration and land management 4,196
2. Tenement management of the exploration and minerals industry 3,080
Total 7,276
Target Actual Target
07/08 07/08 08/09
Royalties ($,000) 33,100 41,421 43,200
Rents and Fees ($,000) 1,124 1,429 1,106
Rents and Fees — Petroleum
(net of administration) ($,000) 67 191 60
Sales of Maps and Publications ($,000) 46 47 41
Mineral Resources Tasmania Annual Review 2007/2008
11
Royalty assessment
MRT is responsible for thecollection of mineral royalties fromCrown Land tenements. Royalty is nota tax but a payment to the communityfor the purchase of non-renewableresources from the State.
The Tasmanian royalty regimeoperates under two systems depending on the type of resource recovered.Companies producing a metallicmineral or coal pay under a two-tieredregime where royalty is paid on the net sales and on the profit of a mine.Royalty on the recovery ofnon-metallic minerals on Crown leasesis set on a per tonne basis.
The two-tiered metallic and coalroyalty consists of an ad valorem
percentage payable on net sales, and aformula-based percentage of profits.This system only requires miningcompanies to pay a lesser fixedminimum royalty in times of noprofitability, but ramps up to amaximum of 5% of net sales as profitsincrease.
The ad valorem rate for net sales is1.6%. The profit component of theroyalty regime is calculated via anexponential formula which increasesthe percentage of profit royalty paid asthe mine’s profit increases.
A royalty cap of 5% of net sales hasbeen set so that high-cost, short-lifemines are not discriminated against.
Mining companies that expand intodownstream processing to produce a
near pure specific metal can apply tothe Treasurer to receive a 20% rebateon royalties payable. Companies thatproduce gold doré can apply to claim a10% rebate on royalties.
The Treasurer has the discretion toincrease the gold doré rebate to 20%depending on criteria such as themagnitude of investment undertakenand the benefit to the Tasmanianeconomy from the investments.
MRT conducts a royalty auditprogram to ensure tenement holdersare paying in accordance with thelegislation. The audit program mainlyconcentrates on the metallic mineswhich contribute the vast majority ofroyalty revenue.
Mineral Resources Tasmania — Legislation and Committees
Legislation administered
! Mineral Resources Development Act 1995
! Mineral Resources Development Amendment Act 2006
! Mining (Strategic Prospectivity Zones) Act 1993
! Petroleum (Submerged Lands) Act 1982
! Beauty Point Landslip Act 1970
! Lawrence Vale Landslip Act 1961
! Rosetta Landslip Act 1992
Statutory bodies with MRT representation
! Nomenclature Board
Non-statutory bodies with MRT representation
! Ministerial Council for Mineral and Petroleum Resources (MCMPR) and associated Standing Committee of Officials, Task Forces and Working Groups
! ABS Mining Statistics User Advisory Group
! Australian Society of Exploration Geophysicists Data Standards Committee
! Chief Government Geologists Committee
! Government Geoscience Information Committee and associated Working Groups
! CODES Centre of Excellence in Ore Deposits Advisory Board
! CODES Centre of Excellence in Ore Deposits Science Planning Committee
! Crown Land Services Technical Advisory Group
! Crown Land Assessment Working Group
! Inter-Departmental Oceans Policy Working Group
! Land Information Coordination Committee (LICC)
! LICC Sub-committee — The LIST Management Advisory Group
! Mineral Exploration Working Group
! Mining Heritage Committee
! National Virtual Core Library Project Committee
! Rehabilitation of Mining Lands Trust Fund Committee
! Tasmanian Statistical Advisory Committee
Mineral Resources Tasmania Annual Review 2007/2008
13
Metallic Mineralsand Geochemistry
During 2007/2008, the MetallicMinerals and Geochemistry Branchcontinued work on thegovernment-funded initiative TIGERGeoscience (TasExplore) Project, butalso continued to develop databases for delivery on the world-wide web and toverify and update existing databases.
The continued increase in mineralexploration activity in Tasmania hasfurther expanded work loads inprocessing exploration tenementapplications and reviews, extracting and maintaining metadata from reports, and attending to a greater number ofenquiries. This is affecting the capacityof the branch to adequately deal withthese demands as well as achieve thetime frames required by the TasExploreproject, and increased resourcing mustbe considered.
Geoscientific data generation
Geological maps in central northernTasmania have been upgraded as partof the TasExplore project. Field workand regional geological interpretationresulted in significant changes to tentiles (Stowport, Ulverstone, Riana,Kindred, Latrobe, Loyetea, Castra,Railton, Sheffield and Liena) andchanges to eight others (Loongana,Wilmot, Lea, Cethana, Gog, Deloraine,Pencil Pine and Montana). A keyoutcome has been the more confidentcorrelation of Cambrian volcanic unitsin central northern Tasmania with thehighly mineralised Mount ReadVolcanics of western Tasmania. Thiswork should result in more effectivemineral exploration in the region.A report on this work was submittedfor publication.
Work continued on a project tounderstand the nature of the SavageRiver iron ore deposit, as part of abroader review of the mineralendowment and potential of the Arthur Lineament. A report was completed on the petrology of the rocks in the minearea, which will result in an improvedunderstanding of mineralising processes
at Savage River and throughout thatpart of northwest Tasmania.
Following the receipt andpreliminary interpretation of newgeophysical data, a team of geologistscommenced work to update thegeology of northeast Tasmania. Onegeologist commenced work on KingIsland and at the end of the year fieldwork for the Grassy 1:25 000 scalemap sheet had been completed.
The project to systematically verifythe more than 4000 entries in theTasmanian mineral deposits databasecontinued, with one person occupiedon this work. At year’s end 98.5% ofentries had been verified and 273 newdeposits had been added to thedatabase. The project has beensuspended following the completion ofthe maximum allowable period ofemployment for a temporary staffmember.
Two map tiles (Gordonvale andTiger) were prepared for digitalcapture during the year, completing the task of the Branch in preparing oldmaps for digital capture at 1:25 000scale.
A revised edition of the Catalogue ofMinerals of Tasmania, the first in someforty years, was completed during theyear and submitted for publication inearly 2008/2009.
Stream sediment samples fromnineteen sites throughout Tasmaniawere collected as part of the NationalGeochemical Survey in conjunctionwith Geoscience Australia. These willbe subjected to precise analyses andwill form part of a benchmark data set.
A trial of a hyperspectral infra-redcore logging device was successfullycompleted, with twelve holes from theMount Read Volcanics, Grieves Siding,the Mathinna Group of northeastTasmania and the Cygnet area beingscanned. A similar instrument, fundedby the Commonwealth under theNational Critical ResearchInfrastructure (NCRIS) Auscope Virtual
Core Library Project, will be installedpermanently in late 2008/2009 and willsignificantly add to the potential of thecore library to provide information todrive new mineral exploration projects.
Database development
A significant part of the work of thebranch for the year continued to betesting of database structures for theTIGER System and verification andcapture of data for incorporation in the system.
Changes to the samples,geochemistry and mineral depositsdatabases were made and at year’s endthese were being moved to theproduction environment.
Branch members contributed to thedevelopment of a national data modelfor mineral deposits and occurrences.
Core library
The increasing level of usage of thecore library continued, with 169 drillcore inspection days occurring duringthe year, a 96% increase on theprevious year.
A total of 9.8 kilometres of core was added to the library collection duringthe year.
During the year a team from theCentre of Excellence in Ore Deposits(CODES) at the University of Tasmania commenced using the core library asthe site to determine detailed physicalproperties of rocks from drill core, aspart of a major project aimed atimproving metallurgical recovery fromores.
A safety audit was conducted at thecore library and issues requiringattention were identified. At year endall electrical equipment at the corelibrary, rock preparation and lapidarylaboratories had been tested forelectrical safety, passed and tagged.Noise levels were tested and existinghearing protection was found to beadequate.
Mineral Resources Tasmania — Review of Branch activities, 2007/2008
During 2007/2008 Mineral Resources Tasmania consisted of five branches: Metallic Minerals and Geochemistry; IndustrialMinerals and Land Management; Information Systems and Geophysics; Data Management; and Royalty, Finance andAdministration.
Because of the integrated nature of the branches, outputs provided under the banner of the Tasmanian Geological Survey are contributed to by staff of all branches.
Mineral Resources Tasmania Annual Review 2007/2008
14
Mineral exploration andother promotional activities
The Tasmanian Governmentprovided $240,000 in 2007/2008 toactively market mineral explorationopportunities in Tasmania. Activitiesundertaken included holding a displayat the world’s leading explorationforum, the Annual Meeting of theProspectors and DevelopersAssociation of Canada (PDAC) inToronto and visiting leadinginternational mining companies inTokyo, Toronto, London andVancouver, both as part of anAustralian team and as a separateTasmanian group. The latter alsovisited companies in London andEurope. A presentation was made atan Australian Mineral ExplorationInvestment seminar in Tokyo.
Several meetings were also held with companies on a one-on-one basis withDIER personnel. In addition to thePDAC meeting, a display waspresented at the Mining 2007 meetingin Brisbane in November and at theAssociation of Mining and ExplorationCompanies National Mining Congressin Perth in June.
Presentations were made at theMining 2007 meeting and to theTasmanian Minerals CouncilExploration Group Meeting inLaunceston in May.
Additional presentations were madeto a delegation from Fujian province, aprivate Chinese company, and theCanadian Consul-General during visitsto the Department of EconomicDevelopment.
Promotional missions and functionswere conducted in Perth, Sydney,Brisbane, Melbourne and Adelaide byofficials from DIER. During these visits,information on the new, four-year,$5.06 million TasExplore geoscience and promotion initiative was well receivedby industry.
These promotions have beensuccessful and continue to play a directpart in attracting new explorationcompanies to Tasmania and inmaintaining interest in the State in theface of strong competition from otherjurisdictions.
Articles, promotional material andinformation on mineral prospectivityand exploration activities in Tasmaniawere prepared for various specialistmining journals. Regular two-monthlysummaries of exploration activities inTasmania were provided as part ofglobal reviews for the internationalSociety of Economic Geologists
newsletter as part of a global review ofmineral exploration.
The petrologist conducted displaysand publication sales at the ZeehanMineral Fair held in November andpresented a talk to 70 students at theHowrah Primary School.
Petrology
The petrologist supervises thepetrological and lapidary laboratories,which provide services for internal andexternal clients.
The laboratories provided a total of$48,020 worth of analyses and servicesto both DIER ($30,520) and externalclients ($17,500). Most of this externalwork cannot be otherwise conductedwithin Tasmania.
The lapidary laboratories prepared538 standard thin sections and 205other sections, making a totalthroughput of 743 samples. Thegeological technician did most of theseon an as-needed basis, interspersedwith field assistant duties; this workwas valued at $22,675.
The technical officer for petrological services processed 312 samples byX-ray diffraction, including 115quantitative dust analyses. He alsoconducted 47 soil and 17 sizing testsand 63 optical asbestos identifications,for a total of 439 samples processed,valued at $25,345.
A total of 280 external (contract)samples were received forinvestigation, mostly by X-raydiffraction analysis. These samplesincluded 192 for occupational healthclients, nine soils, three forensicsamples, twelve construction materials, 25 industrial samples and 27 generalrocks and other samples. This workcame from a wide range of externalsources, including the TransportDivision of DIER, Workplace Standards Tasmania, Tasmania Police,Environment Division, ConsumerAffairs Division and other state andfederal government departments; theUniversity of Tasmania (staff andstudents); various mining, mineralprocessing and mineral explorationcompanies; environmental andoccupational health consultants; thegeneral public and miscellaneousbusinesses.
Samples examined includedgeological materials (constructionmaterials, mineral concentrates, oresamples, rocks, soils, sands and clays)and anthropogenic materials (includingconcrete, asbestos sheeting, industrialmaterials and dusts).
The petrologist, as radiation safetyofficer, has overseen radiation licencerenewals, certification for storage,X-ray equipment safety inspections and other safety issues. Laboratory safetyaudits are underway. Assistance wasgiven with safety audits and a safetyforum was attended. The mineralogist/petrologist assists with supervising thestorage of radioactive, asbestos-bearing and other dangerous substances.Procedures and standards in place fortheir handling were upgraded duringthe year.
Curatorial work has included thecataloguing, sorting, compiling andstorage of rocks and thin sections,preparation and moving of displays,locating samples for internal andexternal users, and general supervisionof the rock store. The old rockcollection and storage databasescontinue to be updated and are beingdigitised and migrated into the TIGERSystem. A total of 2990 new sampleswere added, and 2630 existing sampledetails were updated in the database.The oldest samples are gradually beingboxed and palletised to make space fornew samples. New systems tostreamline sample submission and toimplement safer storage are beingdeveloped.
The petrologist also handled about92 public and commercial enquiries onmineral, mining, gem, soil androck-related matters, particularly inregard to gem, rock and minerallocations and identification,occupational health issues, and minelocations. He also provided occasionalmineralogical and curatorial advice andassistance to the Tasmanian Museumand Art Gallery and Queen VictoriaMuseum and Art Gallery, and has beenappointed an honorary researchassociate of both.
Geochemical laboratory
The laboratory was staffed for mostof 2007/2008 by an acting SeniorGeochemist and three technicalofficers (two full time and one parttime). One of the technical officers,initially appointed as a fixed-termfull-time employee in July 2007, wassubsequently employed as a permanent staff member in March 2008. The acting Senior Geochemist was appointed tothe position of Senior Geochemist inFebruary 2008. The Senior Geochemist was also involved in geological projects, TIGER databases, safety issues andtenement administration.
The geochemical laboratorygenerates the geochemical datanecessary to maintain MRT’s databases
Mineral Resources Tasmania Annual Review 2007/2008
15
and geological mapping. Laboratoryactivities during the 2007/2008 financial year included:
! Addressing OH&S issues hasresulted in considerableimprovements in the laboratories,including disposal of all redundantchemicals, consolidation of chemicalstores into one store, segregation of incompatible substances andpreparation of all necessary OH&Sdocumentation. Many other stepswere also taken to provide a muchsafer working environment. Thelaboratories were inspected by theDIER’s Safety Consultant and wereconsidered to be Australian OH&Scompliant. MRT was praised for itssafety protocols in the laboratories.
! Annual medical examinations oftechnical officers were undertaken,including general health, hearing andblood tests.
! A total of 429 rock samples wereregistered for major and traceelements, with 14,610 individualdeterminations being performed(XRF results, FeO, CO2 , gold andsilver determinations), equivalent tothe analysis of 350 rock sampleswith a value of around $112,000.
! A new fluxer unit (for making fuseddiscs) was purchased. This has
considerably increased theproductivity of XRF rock analyses.
! Analytical and rock crushingequipment was calibrated andmaintained. The XRF unit was in agenerally stable condition, butbecause of its age continued tosuffer from intermittent problemsthat were time consuming and costly to locate and rectify.
! The Leco Induction Furnacecontinues to produce reliable CO2
values (necessary for a completerock analysis), although requiringextensive experimental work tolocate and rectify faults. The Leco isover 25 years old and may need tobe replaced in the near future as it is becoming increasingly difficult tosource replacement parts.
Other activities
! Field staff updated first aidqualifications in August.
! Four staff members are on safetycommittees.
! A branch member is on a committee to prepare authority tables for theNational Geodata Model, a workinggroup established under theGovernment Geologists Information Policy Advisory Committee.
! Another branch member is on acommittee to provide a nationalmodel for mineral deposits data.
! A branch member is on theOperations Committee for theNational Virtual Core LibraryProject.
! Site visits were made to variousexploration project sites and minesduring the year as part of reviewingindustry progress.
! Mineral exploration report andexploration performanceassessments were carried out asneeded, as was preparation ofpromotional leaflets for ExplorationRelease Areas. Particular attentionwas placed on monitoringperformance on explorationlicences.
! Many requests for information ongeology, mineral resources, minerals and related matters were receivedand dealt with promptly.
! Science planning meetings of theCentre of Excellence in OreDeposits (CODES) at the University of Tasmania were attended.
! Three geologists attended parts ofthe CODES course on brownfieldsexploration in June and a paper waspresented.
Mineral Resources Tasmania Annual Review 2007/2008
16
Industrial Minerals andLand Management
This branch is responsible for theinvestigation and promotion ofindustrial minerals, including coal,hydrocarbons and geothermalresources; the management of mineraltenements, land access issues andenvironmental control of explorationactivity; and the protection of miningheritage. It is also responsible forproviding information for themanagement of geohazards, especiallyland stability.
Strategic Prospectivity Zones
Strategic Prospectivity Zones (SPZ)cover 25 200 km2 or 37% of Tasmania.The areas in each SPZ occupied bymineral tenements at the end of June2008 are shown below.
The resources boom is reflected inthe tenement holdings for metallic
minerals within the Mount Read SPZincreasing from 48.9% to 54.5%occupancy, the Balfour SPZ increasingfrom 32.1% to 44.2%, the Cape SorellSPZ increasing from 50.2% to 59.6%,and the Zeehan/Waratah SPZincreasing from 63.2% to 68.5%.
HYDROCARBONS
Petroleum Explorationand Production
Nineteen offshore permits and twoonshore permits are currently held foroil and gas exploration. Threeproduction licences are held over theYolla and Thylacine fields, and aretention lease is held over a smallacreage adjacent to the Yolla field.Hydrocarbons are produced inTasmanian offshore waters from theYolla field, where production
commenced in the third quarter of2006, and from the Thylacine field,where production commenced inSeptember 2007.
The production licence over theYolla gas-condensate field in the BassBasin is held by a consortium headedby Origin Energy Resources Limitedand AWE Petroleum Limited. TheBassGas project to develop the Yollafield involved construction of aproduction platform, two development wells and an undersea pipeline to anonshore processing plant near LangLang in Victoria. The infrastructure was substantially completed by late 2004,but production of gas was delayed bytechnical and safety issues.Commissioning was completed in late2006, with this project expected tosupply around 10 per cent of Victoria’snatural gas needs for fifteen years.
Woodside Energy Limited, on behalf of the Otway Gas consortium, wasgranted a production licence in July2004 for the development of theThylacine gas field, discovered in 2001in the Otway Basin, northwest of KingIsland. The Thylacine platform andundersea pipeline were installed in late2005, and drilling from the platformbegan with Thylacine South-1, adeviated exploration well thatsuccessfully proved a southernextension to the Thylacine field. Anadditional production licence, adjoiningthe existing production licence, wassubsequently granted to allowproduction from the southernextension. The sequential drilling offour development wells thencommenced, with the program beingcompleted in October 2006. Thylacinegas is piped to a processing plant nearPort Campbell in Victoria to supply the growing southeast Australian gasmarket.
Nine seismic surveys, whichencompassed eleven permits, werecompleted during the year. Thesecomprised five 3D surveys and four 2D surveys. Historically there have onlybeen 104 seismic surveys in the lastforty years within Tasmanianadministered waters, and the currentsurveys represent almost 10% of thepast total.
A Controlled Source ElectroMagnetic (CSEM) marine survey wascompleted by Santos in permit T32/Pduring August 2007. This was the firstuse of this new technology inTasmanian administered waters. Santos
ADAMSFIELD
ARTHUR
BEACONSFIELD
BALFOUR
ZEEHANWARATAH
CAPE SORELL
NORTHEAST
Metallic Non-metallic
SPZ Area Occupied Area Occupied
(km2) (%) (km2) (%)
Adamsfield 70.3 95.5 0 0
Arthur 873.6 78.9 304.3 27.4
Balfour 1726.3 44.2 242.4 6.2
Beaconsfield 21.5 100.0 0 0
Cape Sorell 824.2 59.6 626.7 45.3
Mount Read 3951.0 54.5 682.9 9.5
North East 3626.6 37.3 1 042.9 10.7
Zeehan/Waratah 1254.6 68.5 169.9 9.3
(12 348.1) (3069.1)
Mineral Resources Tasmania Annual Review 2007/2008
17
also drilled a wildcat exploration well in T33/P during May/June 2008. This wasonly the fourth well to be drilled in theunder-explored Sorell Basin offwestern Tasmania and the first since1982. The well was dry with noevidence of hydrocarbons present.
Geotechnical coring survey workhas been undertaken in T38/P andT/39P in preparation for wells to bedrilled during 2008/2009. It isanticipated that another explorationwell will be drilled in T/34P during thisperiod.
Offshore oil and gas exploration inCommonwealth waters is currentlycontrolled by the Petroleum (Submerged
Lands ) Act 1967. This act will bereplaced by the Offshore Petroleum Act2006 from 1 July 2008. Tasmaniafinalised amendments to the Petroleum(Submerged Lands ) Act 1982 and foursets of regulations on 16 June 2008, tomirror the Commonwealth legislation.
An amendment to the Petroleum(Submerged Lands) (Data Management)Regulations 2004 removed therequirement for offshore explorationcompanies to submit quarterly reportson their activities. Companies are stillrequired to submit annual reports.
Total Tasmanian offshore petroleum exploration expenditure for 2007/2008 was approximately $76.67 million.
Cataloguing of sample collectionsrelated to offshore petroleumexploration continued during the year,with fifty reports being received duringthe year and indexed. Open-fileexploration reports can be viewed anddownloaded from the MRT website.
Onshore, two Special ExplorationLicences are held for petroleumexploration, one by Great South LandMinerals Limited and the other byPrimeline Petroleum Corporation.Seismic surveying was carried out byGreat South Land Minerals Ltd in early2007. OME Resources Australia Pty Ltd holds a Special Exploration Licence forcoal bed methane.
Mineral Resources TasmaniaDepartment of Infrastructure,
Energy and Resources
Permit area
T/30P
T/36P
T/18P
T/RL1
T/32P
T/35P
T/34P
T/33P
T/40P
T/42P
T/41P
T/38P
T/39P
T/37P
Tasmania Adjacent Area Boundary
TASMANIATASMANIA
Thylacine
July 2008
T/43P
T48/P
Gas pipeline
Wells drilled in Tasmanian waters
Current Petroleum Exploration Permits
Onshore Petroleum Exploration Licences
Port CampbellLang Lang
T/45PT/47P
T/44P
T/46P
TASMANIAN OFFSHORE ACREAGE ANDONSHORE PETROLEUM EXPLORATION LICENCES
TASMANIAN OFFSHORE ACREAGE ANDONSHORE PETROLEUM EXPLORATION LICENCES
Yolla
40°S
42°S
144°E142°E 146°E
40°S
42°S
148°E
146°E144°E
Mineral Resources Tasmania Annual Review 2007/2008
18
Tasmanian NaturalGas Pipeline
Babcock Brown Infrastructure (BBI)acquired the Tasmanian Natural GasPipeline (TNGP) from Alinta DTH PtyLtd on 1 September 2007. PowercoTasmania Pty Ltd, which is owned byBBI, is the day-to-day manager of thepipeline. The TNGP transports naturalgas from Longford in Victoria to BellBay, Hobart and Port Latta viaapproximately 740 km of onshore andoffshore pipeline. The gas is sourcedfrom the Gippsland Basin in Bass Straitand made available, via the TNGP, toindustrial and domestic markets inTasmania.
The TNGP project expands the gasmarket in southeast Australia. Tenpermanent staff are based in Tasmaniato operate the pipeline.
ENVIRONMENT, LANDMANAGEMENT &INDUSTRIAL MINERALS
Industrial Minerals
Tasmania Magnesite NL holdsRetention Licences over the large,high-grade magnesite deposits atArthur River and Lyons River inwestern Tasmania. The companyrecently changed ownership and it isthe intention of the new owners toprogress the resource definition to astage where a Mining Lease can beapplied for and the deposit developed.The new owners continue to look foropportunities for the use of thisresource, while the CSIRO is gettingcloser to developing a commercialmagnesium metal process.
Tasmanian Titanium Pty Ltd sold itsinterests to companies associated withDr Alan Bond. The new owners intendto initially extract ilmenite from theexisting stockpile at Naracoopa, onKing Island, followed by the mining ofheavy mineral beach sands. The new
owners are seeking approval from theKing Island Council for the transportarrangements for the stockpile, and anumber of possible joint venturepartners are talking to the ownersabout further downstream processingpotential.
There has been active explorationfor silica flour throughout the pastyear. Tasmanian Advanced Minerals Pty Ltd have started mining at the newBlackwater mine, south of the ArthurRiver, and is exploring in the HawkesCreek area to the north. The companyhas completed construction of a newsilica flour treatment plant at Wynyard.
Environmental Management
The number of exploration workprograms submitted for approval hasremained at the record levels of2006/2007.
Compliance Auditing
In 1998/1999 MRT developed aGIS-based system to record andmonitor the approval process forexploration programs. A clause in theRegional Forest Agreement (RFA)states that MRT must audit compliancewith the Mineral Exploration Code ofPractice.
The auditing system (TEAMS II)allows the detailed recording of allexploration activities across Tasmania’s many types of land tenure. The life ofthe exploration activity is tracked fromproposal through approval, workscompleted and rehabilitation. Thefollowing tables of statistics areproduced as standard reports from the system. As the system accuratelyrecords exploration details and landtenure, it is not possible to directlycompare this year’s statistics withthose in previous years.
Ninety-six work programs weresubmitted to MRT during the yearcompared with eighty-six in 2006/2007.
Of those received, 74 were approved(thirteen were withdrawn, eleven havesince been approved and four are stillpending). Eighteen work programswere within CAR Reserves andrequired comment from the MineralExploration Working Group. Membersof the Mineral Exploration WorkingGroup attended a number of on-sitefield inspections during the reportingperiod.
Table 1 summarises the types ofactivities approved, within a broaddivision of Tasmania’s land tenuresystem.
A total of 3.37 hectares ofon-ground disturbance was recordedthrough the year. Table 2 shows thebreakdown of the disturbance for thedifferent land tenures and activitytypes.
Of the 3.37 hectares of disturbance,0.70 hectares were rehabilitated during the year, with the remainder to berehabilitated through the life of thelicence. It is a licence condition that allearth-moving disturbance will berehabilitated on or before the expiry of the licence and prior to the return ofthe security deposit.
In Table 3 the area that has beenrehabilitated is shown for each activityand land tenure category. A percentage of the area rehabilitated against thedisturbances (Table 2) is also shown.Approximately 21% of the areadisturbed in the reporting period, forall land categories, has beenrehabilitated.
A total of 182.08 line kilometres ofgridding was undertaken during theyear, with the division between landtenures presented in Table 4.
Table 5 presents the running totalsfor the last four years of the areadisturbed and area rehabilitated.
Approximately 38% of overalldisturbance has been rehabilitated.Disturbances are no longer counted assuch if no further rehabilitation work is required of the explorer, or if the areais taken up as a Mining Lease.
As High Quality Wilderness is anoverlying layer on the above landtenures it is presented separately(Table 6).
Codes of Practice
The fourth edition of the MineralExploration Code of Practice is a codeunder the Mineral ResourcesDevelopment Act 1995. This code is due for review as specified in the ResourcePlanning and Development Commission Inquiry into areas to be reserved under
Australia
Tasmania
EX
PE
ND
ITU
RE
IN
TA
SM
AN
IAN
WA
TE
RS
($ m
illio
n)
90
70
40
30
20
10
0
TO
TA
L A
US
TR
AL
IAN
EX
PE
ND
ITU
RE
($ m
illion
)
3000
2500
2000
1500
1000
0
OFFSHORE PETROLEUM EXPLORATION EXPENDITURE
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
50
60
80
500
Mineral Resources Tasmania Annual Review 2007/2008
19
the Tasmania–Commonwealth Regional Forest Agreement.It is planned to have the revised code ready for publiccomment in 2009.
The second edition of the Quarry Code of Practice is a code under the Mineral Resources Development Act 1995 and iscurrently under review.
Mines Inspection
Mines
Mines continued to prosper during the year with thefollowing developments taking place.
A consortium of Chinese companies, headed by theShagang Group, has acquired the Australian Bulk Minerals(ABM) operation at Savage River, following reviews of theresource in North Pit. The Savage River mine had beenwinding down for closure in 2008, but the new ownerapproved the rapid development of North Pit and isconsidering increasing production. New equipment wasacquired and development accelerated to a rate of 50 000cubic metres of material mined per day. Constructing of anin-pit workshop complex is nearing completion.
Flooding impeded progress by washing out the maincrossing of the Savage River and severely damaging thelow-level crossing. North Pit was flooded to a depth of tenmetres. Both crossings needed extensive reconstruction.A span of the pipeline bridge over the Arthur River was alsodamaged.
Allegiance Mining NL continued with development of itsnickel mine at Avebury west of Zeehan. Construction andcommissioning of a concentrator is advanced andunderground development is proceeding.
Bass Metals Ltd took bulk samples from the former QueRiver mine for treatment at Rosebery. The trials weresuccessful and open-cut mining of P-Q and S lenscommenced, with 5000 to 7000 tonnes of ore per weekbeing shipped to Rosebery for treatment.
The Beaconsfield Mine Joint Venture gold mine atBeaconsfield returned to full production, in stages, followingthe closure of the mine following the rock fall of April 2006.
Bluestone Mines Tasmania Pty Ltd received approval for a level 2 permit for the Mount Bischoff mine and work ondeveloping an open-cut mine commenced. Ore istransported to Renison Bell for treatment. Development ofthe Renison mine, which was on care and maintenance,
Table 1: Activities approved
Activity Car High State Crown Private HEC
Reserve Quality Forest Land Property Land
System Wilderness
Drill site 74 29 170 16 85 0
Helipad site 5 3 5 0 0 0
Bulk sample site 1 0 3 0 3 0
Camp site 4 4 0 0 0 0
Costean (km) 0 0 0 0 0.31 0
Grid (km) 91.92 9.96 61.03 23.39 2.95 2.80
Track (km) 0.64 0.64 0.50 0.00 0 0
Table 2: Area of disturbance (ha)
Activity Car High State Crown Private HEC
(ha) Reserve Quality Forest Land Property Land
System Wilderness
Drill site 0.45 0.21 0.94 0.07 0.41 0
Track 0.46 0.46 0.29 0 0 0
Costean 0 0 0 0 0.12 0
Helipad site 0.12 0.04 0.20 0 0 0
Bulk sample site 0.01 0 0.24 0 0.03 0
Camp site 0.02 0.02 0 0 0 0
Table 3: Area rehabilitated (ha)
Activity Car High State Crown Private HEC
(ha) Reserve Quality Forest Land Property LandSystem Wilderness
Drill site 0.09 0 0.16 0.04 0.14 0
Track 0 0 0 0 0 0
Costean 0 0 0 0 0.08 0
Bulk sample site 0.01 0 0.14 0 0.03 0
Camp site 0 0 0 0 0 0
Table 4: Distribution of gridding (line kilometres)
Car High State Crown Private HEC
Reserve Quality Forest Land Property Land
System Wilderness
91.92 9.96 61.03 23.39 2.95 2.80
Table 5: Disturbance and rehabilitation overthree years
Year Car Reserve State Crown Private HEC Total
System Forest Land Property Land
Disturbance (ha)
2004/2005 6.24 1.40 1.51 0.18 0.17 9.49
2005/2006 5.66 2.10 0.79 0.07 0.25 8.88
2006/2007 4.33 4.98 0.28 0.82 0.04 10.45
2007/2008 1.07 1.66 0.07 0.56 0.00 3.37
Rehabilitated (ha)
2004/2005 5.72 0.15 0.68 0.17 0.09 6.81
2005/2006 1.25 0.41 0.14 0.06 0.00 1.85
2006/2007 0.91 1.58 0.13 0.15 0.00 2.77
2007/2008 0.11 0.30 0.04 0.25 0.00 0.70
Table 6: Disturbance and rehabilitation, High Quality Wilderness areas
Year Disturbance Rehabilitated Percentage of
(ha) (ha) overall disturbance rehabilitated
2004/2005 1.97 1.97 100%
2005/2006 1.71 1.14 67%
2006/2007 1.61 0.30 19%
2007/2008 0.74 0.00 0%
Note: High Quality Wilderness is an overlay on top of Car Reserve System and State Forestso is not added in to the total area of disturbance to avoid double counting.
Mineral Resources Tasmania Annual Review 2007/2008
20
recommenced and the concentratorwas refurbished to commenceproduction from both mines in July.
The Cornwall Coal Company NLinstalled a mini-wall at the Duncancolliery. Preparations for mining theFenton seam at Mount Nicholascommenced with portal constructionfor the Blackwood No. 4 mine.
Intec Ltd recorded good productionon their joint venture with Polymetalsto retreat tailings at the Hellyer minesite. The company also receiveddevelopment approval for its leachingprocess to recover metals fromelectric arc furnace dust and low gradelead concentrate from the tailings.
OZ Minerals Rosebery is conducting a major development program toidentify ore resources and provide anadditional twenty-year mine life. Thecompany was granted a mining lease atSouth Marionoak for the investigationand design of a new tailings dam toreplace the Bobadil dam which isnearing capacity.
Tasmania Mines made improvements to the treatment plant at Kara toincrease capacity. The company applied for a lease extension to provide forincreased tailings storage.
Van Dieman Mines plc commenceddevelopment at the former Scotiaalluvial mine near Gladstone innortheast Tasmania. Dams wereconstructed and a treatment facilitywas built in the township.
Exploration on Mining Leases
On-lease exploration programswere approved on the Avebury,Beaconsfield, Mount Lyell, Henty,Rosebery and Stonehenge leases.
Mine rehabilitation
The Savage River RemediationProgram is a joint program betweenthe Department of Environment, Parks, Heritage and the Arts (DEHPA) andAustralian Bulk Minerals to improvehistoric environmental liabilities at theSavage River mine. Work continuedduring the year to reduce legacy aciddrainage on the mine site. Asurveillance report on the Main CreekNo. 1 tailings dam (or ‘Old TailingsDam’) was reviewed and tenders werecalled for the dam’s rehabilitation.Treatment trials of acid seepage from B dump continued, with mine carbonatesand limestone being used as reagents.The Australian Acid Mine DrainageConference was held in Burnie, with an inspection of the mine and the SRRPprogram being included in the program.
A remediation program is underwayto reduce acid drainage from theMount Lyell mine into the QueenRiver, which discharges into the KingRiver and Macquarie Harbour. Aproposal to treat acid seepage from the Mount Lyell Lease has been underinvestigation by the DEHPA. A watertreatment plant design, which willpartially neutralise seepage, extract 50per cent of the zinc by ion exchange,and extract over 90 per cent of thecopper by iron cementation, has beenselected. Further design work isplanned for 2008/2009.
Town planning and quarries
Comments were provided to theDEHPA on environmental management plans for the Intec Ltd tailings leachingat Hellyer, Tasmanian AdvancedMinerals operations near Corinna andat Arthur River, Boral quarries atThe Nook, Launceston andBeaconsfield, and Fieldwick’s quarriesat Blackberry Hill (Sheffield) and Dianas Basin (St Helens).
Comments were provided tomunicipal councils and submissionswere made at Resource Planning andDevelopment Commission hearings for the review of planning schemes for theCentral Coast, Clarence, MeanderValley and West Tamar municipalities.Land stability, access to mineralresources and encroachment ontoextractive industries are importantissues in these municipalities.
The Break O’Day council isassessing Fieldwick’s quarry at DianasBasin, where a level 2 permit isrequired to reflect current productionlevels. Similar situations have arisen atquarries at Welborough Pass andBlackberry Hill.
The Launceston City Councilapproved a proposed residence nearDTK Logging’s operation near Lilydale.The lessee successfully appealed against the decision.
In the past the quarry at TolosaStreet, Glenorchy, encroached into the Wellington Park. Although a boundaryadjustment was negotiated, the lesseeappealed against conditions applied tothe permit. The appeal is yet to beresolved.
Hanson Construction Materials PtyLtd continues to negotiate with theClarence City Council to purchase land adjacent to the quarry at Flagstaff Gully. The company has presented potentialquarry extension proposals atcommunity consultation sessions inanticipation of a rezoning application to permit future development of the
quarry. MRT lodged an objectionagainst a proposed subdivision adjoining the quarry’s boundary.
The Northern Midlands Councilreceived an application to rezone land,near three quarries at WesternJunction, for tourism and residentialuse. MRT objected to the residentialcomponent of the application. Thequarries are considered to be ofregional importance and any residential encroachment will impede theirdevelopment. Hearings will occur laterin 2008.
In 2006/2007 MRT successfullyapplied for rezoning of the Seven MileBeach Protected Area to permit sandextraction. As a result, Sanbar Pty Ltdapplied for a mining lease and permit,and comments were provided on theirEnvironmental Management Plan. Apermit was issued and development ofthis resource commenced in June. Inconsideration of competing matters ofpublic interest in the protected area,the Department of EconomicDevelopment appointed Victorianplanning consultants TRACT to draft astrategic plan to review potentialoptions for the area’s long term use.
A Draft State Policy on theprotection of agricultural land is underconsideration by government.Submissions were made to preventconflict between the policy andimportant extractive industriessurrounded by agricultural land.
Statements were submitted to theDirector of Public Prosecutionsconcerning sale of material illegallyextracted from a property at Sandford.Notice was served on a former leaseapplicant near Heybridge to stopextraction and apply for a Mining Lease, with a lease application resulting fromthis action. Two similar reports areunder investigation at Nabageena in the Circular Head area.
Work commenced on developing amining lease inspection system (MLIS)to interface with REGIS in the TIGERSystem. Development of the minedisturbance GIS (MLIGIS) programcontinued.
URBAN GEOLOGY
This section provides geoscientificinformation for the management ofgeohazards, especially land stability. Byensuring relevant geoscientific data areavailable to the public and privatesectors, better land-use decisions canbe made.
Mineral Resources Tasmania Annual Review 2007/2008
21
Land Instability
Land instability is a significant hazard in Tasmania, with many homes havingbeen destroyed over the years andsignificant damage caused toinfrastructure. By studying andunderstanding the landslide hazard it isoften possible to minimise or avoid the effects of land instability. MRT isactively addressing this hazard in threemain areas; hazard mapping, databasedevelopment and landslide monitoring.
A regional landslide mappingprogram of the Devonport to BoatHarbour Beach area on the NorthWest Coast, incorporating recentlydeveloped risk assessmentmethodologies, is in progress. This area is renowned for the high incidence oflandslides, particularly close to thecoast where there is increasingpressure for urban development. Thelandslide maps, when finished, willpotentially improve land use decisionsby regulators and other stakeholders.This project is in partnership with local councils and with funding assistancefrom the Australian and Tasmaniangovernment’s Natural DisasterMitigation Programme (NDMP).
The TIGER landslide database formsa critical data foundation for thelandslide project. Ongoing data entryand maintenance occurred during theyear and there are now over 2000records from throughout Tasmania.A substantial upgrade of thefunctionality of the database occurredand a simplified view is now availableon the Geoscience Australia website.MRT contributed to the landslidechapter in the Natural Hazards inAustralia. Identifying Risk AnalysisRequirements monograph published byGeoscience Australia.
MRT continues to coordinate theongoing monitoring of the Taroonalandslide in Hobart and the LawrenceVale landslide in Launceston. Regularinclinometer surveys provideinformation for the management ofthese areas and their surrounds. Withfunding assistance from the NDMP,MRT has begun installing a nearreal-time monitoring facility for theTaroona landslide to improve ourability to understand the causal factorsto landslide movement.
MRT participated in a validationstudy of the debris flow mapping it hadpreviously undertaken in Glenorchyand Hobart in 2005. The study involved two leading geotechnical experts in the field and resulted in the production of a report that has been presented to theState Emergency Service forconsideration.
In addition to the three mainactivities outlined above, generalinformation was provided to variousstakeholders, including comments onplanning schemes and significantdevelopments.
Tsunami
With funding assistance from theNDMP, MRT project-managed aninvestigation of palaeotsunami depositsin the greater Hobart area andundertook a review of historicalrecords of tsunami in Tasmania. Thiswork is being done in conjunction withinundation modelling by other parties,which together will lead to thequantification of hazard and risk.
REGISTRY
The Registry Section maintains anumber of mining tenement registers in hard copy and electronic format. Thesection provides advice to officerswithin MRT, inquirers from otheragencies, the mining industry, the legalprofession and the general public on awide range of matters associated withmining tenements and legislation.
The processing of applications formining tenements and issue oftenement documentation continues toprovide the majority of work for thesection’s officers.
Close liaison is maintained withprofessional geological officers of MRT, particularly in relation to maintenanceof the TASXPLOR database,monitoring of exploration expenditure, circulation of company reports, andpreparation and circulation of theTasXplorer news sheet.
The section liaises with a number ofother agencies in regard to tenementapplications and provides informationto field staff who monitor on-groundactivity on mining tenements.
Requesting and collation ofproduction and expenditure statistics is
an important activity carried out by the section. These statistics provide thebasic data for collection of royaltiesand assessment of exploration levels.
Twenty-six Exploration ReleaseAreas (ERA), covering 2263 km2, wereoffered to potential explorers by wayof the TasXplorer news sheet, which iscirculated widely within the Australianmining community. The news sheet issent to 249 clients of MRT by facsimile(69) and post (180), and is also available on the MRT website. Applications were received for areas within thirteenadvertised ERA’s resulting in thirteenexploration licence applicationscovering 709 km2 of ground.
Officers of the section play a keyrole in maintenance of the TASXPLORand REGIS modules within the TIGERdatabase management system.
Mining Legislation
The Mineral Resources DevelopmentAct 1995 is the principal legislationrelating to the management andregulation of mining tenements inTasmania.
Mineral Resources Tasmaniaprovides information through ServiceTasmania outlets and forms approvedunder the Mineral ResourcesDevelopment Act 1995 are available fordownloading on MRT’s website.
The Mineral Resources Regulations2006, replacing the Mineral ResourcesRegulations 1996, came into force on28 June 2006.
Mining Tribunal
Under the Mineral ResourcesDevelopment Act 1995, a MiningTribunal, consisting of a magistrate, has jurisdiction to hear a wide range ofmining disputes.
The Act places an obligation on theDirector of Mines to attempt toresolve disputes before there is aformal hearing before the tribunal. Ineffect this usually consists of informalmediation, arranged by the Director ofMines, between the parties.
Experience to date suggests that the dispute resolution process required bythe Act adequately covers mostsituations that would otherwise require formal determination.
Mineral Resources Tasmania Annual Review 2007/2008
22
Tribunal claimsTribunal claims lodged with Mineral Resources Tasmania
during the year, or still in progress, were:
74307 Richey Fishing Co. Pty Ltd, R Jessup, Tasmanian Scallop
Fisherman’s Association and Tasmanian Fishing
Industry Council v Bonaparte Diamond Mines NL —
EL32/2006
Objection lodged on effects of exploration and
mining on fishing grounds. Objections withdrawn
following mediation.
74313 M & P Blythe and G & W Blythe v Diatreme Resources
Pty Ltd — EL6/2007
Objections lodged by land holders. Objections
withdrawn following mediation.
74322 C Schwoch v Goldstock Mining NL — EL 20/2006
Objection lodged by operator of tourism business.
Objection withdrawn following mediation.
74323 J Hepehi and A Winkel v G Smith — 1243P/M
Objection lodged by land owners in relation to
encroachment by adjoining quarry operation.
Mediation held. Referred to Mining Tribunal.
74327 V Smith v Accord Mining Pty Ltd — EL30/2007
Objection by land owner not wanting exploration on
property. Objection withdrawn.
74328 Tarkine National Coalition Inc. v Icon Resources Ltd —
EL26/2007
Objection lodged in regard to high conservation
values within application area. Objection withdrawn.
74329 Tarkine National Coalition Inc. v Bass Metals Limited —
EL24/2007
Objection lodged in regard to high conservation
values within application area. Objection withdrawn.
74334 K R Cuthbertson v New Hope Exploration Pty Ltd —
EL44/2007
Objection by land owners not wanting exploration
on property. Objection withdrawn.
74339 Roaring 40s Renewable Energy Pty Ltd and Tasmatex
Pty Ltd v Geopower Pty Ltd — SEL 37/2007
Objections by wind farm developer and property
owner. Objections withdrawn.
74341 North East Bioregional Network Inc. v Green RiverResources Limited — EL52/2007
Objection lodged in regard to high conservationvalues within application area. Objection withdrawnfollowing mediation.
74343 Kinsbrook Pty Ltd v P McIvor — 1780P/M
Dispute between land owner and operator of mininglease. Referred to Mining Tribunal.
74344 M and E Phelan v T Kapitany — 25M/2000
Appeal against registration of caveat on a mininglease.
74346 Go Wild Consulting and others v Planet Minerals Pty Ltd— EL60/2007
Objections lodged in regard to high conservationvalues within application area. Licence refused byMinister.
74348 T Dudley and A Hunkeler v J I Stewart and GeotechInternational Pty Ltd — EL2/2008
Objections lodged in regard to high conservationvalues within application area. Meeting of partiesundertaken.
74351 Van Diemans Land Company v Mineral Holdings Australia Pty Ltd — EL14/2008
Objection lodged by land and lease holder. Objection withdrawn following mediation.
74352 Van Diemans Land Company v Mineral Holdings Australia Pty Ltd — EL12/2008
Objection lodged by land and lease holder. Objection withdrawn following mediation.
74353 Red River Resources Limited v Tasmania Mines Limited — 8M/2008
Objection by holder of exploration licence.Objection withdrawn following mediation.
74354 J R Wilson v Mincor Zinc Pty Ltd — EL18/2008
Objection lodged by land holder. Applicationwithdrawn by applicant.
74355 J and P Meny, and others v Dove River Pty Ltd, GujaratNRE Resources NL, Southern Ocean Science Pty Ltd andJ McDougall — EL16/2008
Objections lodged by land holders.
74356 P & G De Burgh-Day and others v Mincor Zinc Pty Ltd —EL17/2008
Objections lodged by land holders.
Mineral Resources Tasmania Annual Review 2007/2008
23
Total number of all types of exploration rights heldas at 30 June 2008
Mining Tenement Number Area
Exploration Licences —
Category 1 (Metallic minerals) 214 15 280 km2
Category 2 (Fuel minerals) 18 2 178 km2
Category 3 (Construction minerals) 36 2 985 km2
Category 4 (Oil — onshore) 3 39 666 km2
Category 5(a) (Industrial minerals) 68 6 062 km2
Category 6 (Geothermal) 7 31 555 km2
Retention Licences —
Category 1 (Metallic minerals) 21 101 km2
Category 2 (Fuel minerals) 5 163 km2
Category 3 (Construction minerals) 20 99 km2
Category 5 (Industrial minerals) 19 102 km2
Prospectors Licences issued 145 Not applicable
Permits to explore for minerals under theCommonwealth Offshore Minerals Act 1994 2 517 blocks
Retention Licence under theCommonwealth Offshore Minerals Act 1994 1 20 blocks
Permits to explore for petroleumunder the Commonwealth Petroleum(Submerged Lands) Act 1967 19 1022 blocks
Retention Licence under the CPSLA 1967 1 5 blocks
Pipeline licences held under the CPSLA 1967 3
Pipeline licences held under the TasmanianPetroleum (Submerged Lands) Act 1982 1
Production licences held under theCPSLA 1967 3 8 blocks
(Note: Exploration licences and retention licences mayinclude more than one category)
Leases applied for in 2007/2008
Product Number Area (ha)
All minerals 1 20Dolerite 2 561Easement 5 670Gold 1 40Gravel 9 182Sand 7 800Sand and gravel 4 94Sand and stone 2 101Silica 1 214Stone 12 1096Stone and gravel 2 42Total 46 3 820
Leases granted in 2007/2008
Product Number Area (ha)
All minerals 2 669All minerals and stone 1 247Dolerite 1 6Easement 3 242Gravel 3 27Sand 3 553Sand and gravel 3 33Silica 1 214Stone 2 147Stone and gravel 1 4Tin 1 382Total 21 2 524
Total number of leases in force at 30 June 2008
Product Number Area (ha)
All minerals 26 19 084All minerals and stone 5 5 958Clay 4 83Coal 2 6 289Coal and stone 1 175Copper 1 5Dolerite 3 567Dolomite 3 238Easement 18 1950Gold 13 960Granite 5 55Gravel 165 3 012Gravel and clay 1 29Lime sand 3 21Limestone 5 1 268Nickel 2 1 346Peat 1 9Quartzite 1 191Sand 55 2 546Sand and gravel 27 1 426Sand and stone 13 915Sandstone 5 34Shale 2 35Silica 2 324Silica sand 1 20Slate 3 165Specimens 8 70Stone 213 5 889Stone and gravel 23 436Tin 9 694Tungsten 1 544Total 621 54 338
Lease Applications, 2007/2008
Mineral Resources Tasmania Annual Review 2007/2008
24
Information Systemsand Geophysics
The main activities of theInformation Systems and GeophysicsBranch in the 2007/2008 year were:
! The ongoing maintenance anddevelopment of the TIGER(Tasmanian Information onGeoscience and ExplorationResources) System.
! Completing acquisition of goodquality aeromagnetic andradiometric data over northeastTasmania as part of the TasExploreproject.
! Participating in a NationalGeoscience Agreement PotentialField Study of Bass Strait and areasoffshore from western Tasmania and west of King Island.
! Supporting the informationtechnology environment in MRT.
! Migrating data into the TIGERSystem.
! Preparing materials for andparticipating in MRT promotionalactivities.
The branch also providedgeophysical services and advice to MRT and our clients.
The branch is structured to reflectthe functions needed to achieve theoutcomes required by MRT andprovides operational and geophysicalservices. At 30 June there were fivepermanent systems support staff in theOperations Section. The systemssupport staff are deployed within thefunctional areas of PC and networkoperations or database and TIGERSystem support. The branch manager is also responsible for MRT’s geophysicalactivities.
Major branch achievements duringthe year included:
! Release of the first ever good quality aeromagnetic and radiometric dataover northeast Tasmania.
! Producing the first combined grid ofgood quality aeromagnetic data over Tasmania and Victoria.
! Completion of the first phase ofacquisition and integration of newgravity data from northeastTasmania as part of the TasExploreproject.
! Introducing significant improvements into a number of TIGER modules.
! Building an increased informationskills-base for MRT staff.
! Participating in major national andinternational promotional activities.
GeophysicsThe TasExplore project is acquiring
new airborne and ground geophysicaldata over northeast Tasmania and theFurneaux Group as part of the 2006State election initiative to encouragemineral exploration in northeastTasmania and parts of northwest andcentral northern Tasmania. Flyingcommenced early in 2007 and all newaeromagnetic and radiometric datafrom the Furneaux Group andnortheast Tasmania were released in2007. A series of qualitative andquantitative interpretation reportsbased on the new airborne data werereleased in March 2008 and areavailable on the MRT website. The first phase of ground gravity data acquisition was completed early in 2008 and 860new readings were integrated with theexisting data. Tenders will be called inJuly for a second phase to commencein October 2008.
As part of a joint NationalGeoscience Agreement project MRThas been provided with good qualityaeromagnetic data over Bass Strait andfrom areas offshore of westernTasmania and King Island. For the firsttime it has been possible to produce agood quality grid of aeromagnetic dataover Tasmania and Victoria and toattempt to establish the nature ofgeological relationships between thetwo states.
The MRT website has indexes ofopen file geophysical data includinggravity base stations, airbornegeophysical surveys for which digitaldata are held, and gravity stations.Where applicable the basic digital datacan also be downloaded and new openfile data has been added to the websiteas it is received. All open-file airbornegeophysical datasets have beenconverted to provide information inboth AGD66 and GDA94 datums.Survey control point information canbe easily retrieved from The LIST aftercarrying out a map-based search on the MRT website.
During the year 3709 open-file andclosed-file gravity readings were addedto the Tasmanian database which nowcontains a total of 75,373 stations.MRT supported the fieldwork of anHonours student, Thomas Methorst, to acquire gravity data over the centralpart of Flinders Island. Significant gapsremain in the State coverage with areas in the northeast being targeted thisyear and next as part of the geophysical
component of the TasExplore project.The gravity base station informationavailable on the MRT website has beenextended with the addition of anumber of new stations in northeastTasmania.
The branch has participatedextensively in both the production ofpromotional materials and inpromotional activities at a number ofnational and international conferences.
TIGER SystemFollowing completion of Project
TIGER on 30 June 2003 the TIGERSystem, which provides a single storage environment for MRT’s corporate data, has been supported entirely from MRTresources. As recommended in the2006 review by Deloitte GrowthSolutions Pty Ltd, maintenance andtargeted enhancement of the TIGERSystem has been undertaken by meansof a series of small contracts where the contractors work closely withInformation Systems and other MRTstaff. This strategy has proven effective, with a number of significantimprovements being made to theTIGER intranet applications used byMRT staff and to searching and delivery of information on the MRT website.
The GDA94 datum has now beenimplemented for tenement information across the TIGER System and on theMRT website. In most modules spatiallocation information is retained withthe original values as entered and acorresponding spatial data objectcreated with un-projected GDA94values.
Using the TIGER System MRT staffenter, maintain and search corporatedata relating to all aspects of MRT’sactivities including tenements,exploration reports, MRT publications,drilling, geohazards, samples,geochemistry and observations, mineral deposits and geophysics from a number of browser-based thin clientapplications accessed via the MRTintranet. The MRT website enablesaccess to this corporate data andassociated metadata from anywhere inthe world with internet access. Dataare delivered to clients through theMRT website using customised textualand spatial searches and a number ofbasic data sets are also available fordownload.
A total of 2538 gigabytes wasdownloaded from the MRT websitethis year compared to 4426 gigabytes
Mineral Resources Tasmania Annual Review 2007/2008
25
0 200
Kilometres
AEROMAGNETIC DATATASMANIA–VICTORIA REGION
Mineral Resources Tasmania Annual Review 2007/2008
26
last year, this reduction reflecting more mature search engine indexing of thesite and a number of website crashesassociated with large downloads. Anupgrade of the website is planned toovercome this problem. The number of visits per day has dropped to 698 from1114 over the course of the year.
Development of a MicrosoftExcel-based bulk loader for loading and editing sample and geochemical data for the TIGER System was completedduring the year. A revised map viewerclient for all TIGER modules and theMRT website is in the late stages oftesting and will significantly improve the presentation of map-based information. Scanned drill logs and seismic sectionscan now be retrieved using metadatasearches and viewed on or downloaded from the MRT website. Other majorupgrades to the TIGER System that are in progress include development of amodule for handling all MRT clients and contacts and a textual interface for theMining Lease Inspection System.
Delivery of MRT geochemical dataas part of the SEEGrid demonstratorceased following the implementation, in conjunction with Geoscience Australia,of a web-based GeohazardDemonstrator using a new version ofGeoserver.
IT summaryIn accordance with government
guidelines, MRT replaces desktop PCsevery three years and transfers theoriginal PCs to the Schools Program.New PCs are purchased with thecurrent Microsoft enterprise operatingsystem. Availability of MapInfo has been extended to more users and datasetshave been modified to simplify the useof these with MapInfo.
There are several network PCservers running Windows Server. Themain PC network server is runningNetware 6.5 with approximately 600gigabytes of on-line storage. Windowsservers provide anti-virus, email,intranet and image delivery services toMRT staff. Files on the corporate Unixsystems are accessed from PCs usingSamba software. Windows ServerUpdate Services have beenimplemented throughout theMicrosoft-based components of theMRT network. Single sign-on is beingintroduced across the entire networkincluding PC servers, the TIGERSystem, mail and Unix servers and willreduce the burden on users previouslyrequired to remember and maintainseparate passwords for each function.
Unix systems provide corporateinformation technology services toMRT staff. In addition there are Unixservers dedicated to development andtesting for the TIGER System, for theMRT intranet, and for Samba. A further two Unix servers host the MRTwebsite. The MRT website is located in the Rosny Park building to simplifymaintenance and up-loading of data tothe website servers and has a50 Mbit/sec connection to the internet.
The MRT website continued to bewell used with an average monthlydownload volume of 211 gigabytes anda peak monthly download volume of391 gigabytes. The daily averagenumber of visits decreased over theyear from 1114 per day to 698 per day. The MRT website provides ahigh-speed access point for clients toaccess the open-file data held in theMRT corporate informationmanagement system. Oracle spatialreplication is used between MRT’sinternal and web servers. The websiteoffers an OGC Web Map Service
allowing connection from popular GISpackages to a restricted number of data sets. Larger datasets stored on the filesystem are now automaticallyreplicated on a daily basis as theybecome open file. In excess of fourterabytes of network-attached storageis used to accommodate these largedata volumes.
Data captureCapture of metadata summarising
technical documents relating toexploration continued throughout theyear, with 212 new summaries enteredand 374 summaries updated. Inaddition to internet searching of thesummaries of open-file technicaldocuments held by MRT, all open-filedocuments relating to onshore oroffshore exploration and open-file MRT publications can be viewed ordownloaded in full over the internet.
All mineral exploration reports arerequired to be in the national standardformat for digital reporting butcompliance with the report format atinitial lodgement has continued atapproximately 90 per cent comparedto the target of 100 per cent. This isthe same as in the previous year andappears to have occurred as a result ofincreased activity and demand forresources within companies.Consultation with and assistance tostakeholders has ensured thatnon-compliant reports have beenupdated to conform to the dataformats detailed in the nationalguidelines. Because of the extendedtime before GDA94 topographic basemaps will be available for all Tasmaniaall incoming reports continue to bechecked to ensure that the geodeticdatum used is clearly specified.
Mineral Resources Tasmania Annual Review 2007/2008
27
DataManagement
The role of the Data ManagementBranch includes:
! geoscientific data management;
! tenement management services;
! management of the GeographicInformation System (GIS);
! management of the Computer-Aided Drafting (CAD) system; and
! provision of support draftingservices.
During 2007/2008 the capture of1:25 000 scale digital geological datacontinued. This work resulted in thecompletion of twelve new map areas.
! eight completed 1:25 000 scaledigital geological maps in southernTasmania (Blackmans Bay,Collinsvale, Elliott, McPartlan,Mulcahy, Solitary, Strathgordon,Wings);
! four completed 1:25 000 scale digital geological maps in northeasternTasmania (Blessington, Nunamara,Patersonia, Roys).
Data capture/output was completedfor the revision of seven map areas for
the TasExplore initiative in centralnorthern Tasmania (Castra, Deloraine,Kindred, Latrobe, Montana, Sheffieldand Stowport) with capture/outputcommencing on a further nine mapareas (Lea, Liena, Loongana, Loyetea,Pencil Pine, Railton, Riana, Ulverstoneand Wilmot).
The conversion of existing 1:25 000scale digital geology maps from theAGD66 datum to the GDA94 datumcommenced.
Work on the ‘seamless’ coverage of1:25 000 scale digital geology ofTasmania continues, with maintenancebeing carried out on a regular basis.Maintenance of the 1:250 000 scaledigital geology of Tasmania was alsocarried out on a regular basis.
Work commenced on the landslidehazard series maps for Devonport andUlverstone.
CAD continues to be used as asupport tool for many projects, with 15 maps and plans and 289 tenement maps and diagrams being producedthroughout the year.
Tenement administration workincluded:
! seventy-five new exploration licence applications processed and enteredinto the MRT tenement informationsystem;
! fifteen Exploration Release Areaplans produced and entered into the MRT tenement information system;
! forty-six new mining leasesprocessed and entered into theMRT tenement information system;and
! the production of maps and datafiles for 97 proposed ‘on ground’work programs for explorationlicences.
A total of 1287 hardcopy outputproducts of digital geology andtenement data were produced ondemand using the agency’s inkjetplotters, with 185 data sets of digitalgeological data being produced forclients.
Royalty, Finance andAdministration
This branch provides the corporatesupport function for Mineral Resources Tasmania. The main activities of thebranch include:
! Ensuring that effective royalty andfee collection systems andassessment programs are in place so that revenues are properly managedand accounted for to the satisfaction of the Auditor-General.
! The timely provision of financial,accounting and administrative advice to the division in conjunction withdepartmental corporate services.
! The production of publicationsrelating to the interpretation andrecording of Tasmania’s geoscientific nature, geohazards and mineralwealth, in both electronic andhard-copy form.
! The maintenance of the staticcontent of the MRT website.
! Ensuring that all corporateinformation is kept in an orderlymanner and is readily retrievable.
! Maintaining the MRT librarycollection and ensuring thatresources are provided to undertake the development and delivery ofinformation services to MRT staff,the mineral industry and membersof the public.
! Providing executive support to theDirector of Mineral ResourcesTasmania.
Information andAccess Services
Publications
MRT produces a range ofpublications to support its activities,including geological reports,promotional documents, newsletters,materials for displays, ExplorationRelease Area flyers, and other reportsand promotional materials as required.
Major publications produced duringthe year included:
! The Mineral Resources TasmaniaAnnual Review for the year2006/2007.
! Explanatory report for the Maydena,Skeleton, Nevada, Weld and Pictongeological map sheets, byC. R. Calver, S. M. Forsyth andJ. L. Everard (Explanatory Report1:25 000 Scale Digital GeologicalMap Series 1).
! Regional geology of the SouthernSmithton Synclinorium. ExplanatoryReport for the Roger, Sumac andDempster 1:25 000 scale geologicalmap sheets, far northwesternTasmania, by J. L. Everard, D. B.Seymour, A. R. Reed, M. P.McClenaghan, D. C. Green, andC. R. Calver (Explanatory Report1:25 000 Scale Digital GeologicalMap Series 2).
Twenty-seven flyers promotingExploration Release Areas wereproduced. A considerable amount ofpromotional and display material wasproduced as required.
Mineral Resources Tasmania Annual Review 2007/2008
28
1:25 000 SCALE
DIGITAL GEOLOGICAL MAP PROGRAM
As at 1 July 2008
1:25 000 SCALE
DIGITAL GEOLOGICAL MAP PROGRAM
As at 1 July 2008
1:25 000 SCALE
DIGITAL GEOLOGICAL MAP PROGRAM
As at 1 July 2008
MARRAWAH EAST& WEST (2 maps)
PORT SORELLNORTH & SOUTH
(2 maps)
STRAHAN EAST& WEST (2 maps)
BOBS
BISDEE
RAMINEA
HASTINGS
CLOUDY
DOVER
PARTRIDGE FLUTED CAPE
CYGNET
LYMINGTON GREAT BAY
ADVENTURE BAY
COMMUNICATION TARANNA
PORT ARTHUR
RAOUL
HIPPOLYTE
TASMAN
MURDUNNA
LISDILLON
MAYFIELD
BOUGANVILLE
GRINDSTONE
BICHENO
FRIENDLY
LODI
PICCANINNY
IRONHOUSE
SEYMOUR
FALMOUTH
BEAUMARIS
LYME REGISNORTH & SOUTH
(2 MAPS)
MUSSELROE
GLADSTONE
LANKA
SPURRS RIVULET
BLUE TIER
PYENGANA
BRILLIANT
DUBLIN TOWN
ST MARYS
FINGAL
ST JOHN
HENRY
APSLAWN
CRANBROOK
SWANSEA
DARLINGTON
RIEDLE
PERON
NATURALISTE
EDDYSTONE
ANSONS BAY
THE GARDENS
BINALONG
ST HELENS
COLES BAY
GRAHAM
SCHOUTEN
TOMAHAWK
MONARCH
PIONEER
DERBY
RINGAROOMA
VICTORIA
SADDLEBACK
MATHINNA
MANGANA
ROSSARDEN
ST PAULS DOME
ROYS
SNOW
LEAKE
COLONELS
TOOMS
ROYALTY
RAVENSDALE
TRIABUNNA
ORFORD
SANDSPIT
KELLEVIE
DUNALLEY
HANLETH
DIAMOND
CAMPBELL TOWN
ROSS
MORRISTON
FADDENS
LEMONT
WHITEFOORD
WOODSDALE
BUCKLAND
RUNNYMEDE
SORELL
CARLTON
CREMORNE
OXBERRY
PEARLY BROOK
SCOTTSDALE
SPRINGFIELD
MAURICE
BEN NEVIS
GIBLIN
STACKS
STANHOPE
BRIDPORT
BOWOOD
NABOWLA
LISLE
PATERSONIA
NUNAMARA
BLESSINGTON
COLEBROOK
BAINS
TEA TREE
RICHMOND
HOBART
TAROONA
BLACKMANS BAY
EVANDALE
NILE
CLEVELAND
CONARA
JACOBS
ELLINTHORP
TUNBRIDGE
VINCENTS
OATLANDS
STONOR
BARNES
DELMONT
O'CONNORS
MILLERS
PENNY
INTERLAKEN
TABLE
DENNISTOUN
BOTHWELL
KEMPTON
LONGLEY
HUONVILLE
WEYMOUTH
RETREAT
LILYDALE
DILSTON
LAUNCESTON
PROSPECT
LONGFORD
CRESSY
ELDERSLIE
BROADMARSH
NEW NORFOLK
COLLINSVALE
LOW HEAD
BELL BAY
BEACONSFIELD
EXETER
BRIDGENORTH
WESTBURY
CLUAN
LIFFEY
POATINA
BRADYS LO
ARTHURS LAKE
WIHAREJA
STEPPES
HERMITAGE
CLUNY
CAWOOD
MONTACUTE
HAMILTON
BUSHY PARK
UXBRIDGE
LLOYD
LONNAVALE
GLEN HUON
GEEVESTON
WATERLOO
HARFORD
W FRANKFORD
PARKHAM
DELORAINE
MONTANA
QUAMBY BLUFF
MAYDENA
SKELETON
NEVADA
WELD
PICTON
BREONA
SPLIT ROCK
MIENA
MONPEELYATA
WADDAMANA
ECHO
DEE
STRICKLAND
OUSE
ELLENDALE
DOBSON
BURGESS
LEPRENA
RECHERCHE
PRECIPITOUS
PRION
LOUISA
DE WITT
DEVONPORT
LATROBE
RAILTON
SHEFFIELD
GOG
MOLE CREEK
ADAMSFIELD
BOWES
LAKE MACKENZIE
PILLANS
ADA
OLIVE
INA
BRONTE
D?ARCYS
TARRALEAH
WAYATINAH
WYLDS
GORDONVALE
TIGER
ANNE
SCOTTS
RAZORBACK
GLOVERS
FEDERATION
RAY
COX
TOLOPEA
ULVERSTONE
KINDRED
CASTRA
WILMOT
CETHANA
LIENA
POKANA
WINGS
STRATHGORDON
McPARTLAN
SOLITARY
BORRADAILE
ROWALLAN
CATHEDRAL
DU CANE
OLYMPUS
RUFUS
ARROWSMITH
MAJORS
ALGONKIAN
SPIRES
MACONOCHIE
CROSSING
LEGGE
RUGBY
MEL
BURNIE
STOWPORT
RIANA
LOYETEA
LOONGANA
LEA
PENCIL PINE
CRADLE
WILL
GOULDS
COLLINGWOOD
LODDON
ACHILLES
DOME
VERA
WARNES
ABEL
LANCELOT
OLEGAS
SERPENTINE
VIEW
ROOKERY
PROPSTING
DAVEY
SETTLEMENT
BREAKSEA
HILLIARD
WYNYARD
CALDER
YOLLA
TEWKESBURY
PARRAWE
GUILDFORD
PEARSE
CHARTER
BLOCK
TULLAH
SELINA
TYNDALL
GORMANSTON
OWEN
DARWIN
D'AGUILAR
INNES
MOORES
OSMUND
LEWIS
ELLIOTT
MULCAHY
ENGINEER
McCALL
LIMEKILN
MAINWARING
KELLY
TABLE HEAD
VARNA
ALBINA
ROCKY CAPE
MAWBANNA
MILABENA
FOLLY
LUINA
RAMSAY
PARSONS
ROSEBERY
DUNDAS
OCEANA
PROFESSOR
TEEPOOKANA
PHILIPS
SARAH
BIRCHS
KEITH
BARETOP
WARATAHKENNETH
JOHNSONS
BLUFF
SUNDOWN
ORDNANCE
GRIM
STUDLAND
CAMERON
TEMMA
LILY
LAGOON
MELLA
TOGARI
ROGER
SUMAC
DEMPSTER
BALFOUR
INTERVIEW
HARDWICKE
AHRBERG
MALLANNA
WICKHAM
STOKES
PEARSHAPE
SALTWATER
SEA ELEPHANT
NARACOOPA
GRASSY
EGG LAGOONNEW YEAR
REEKARA
LOORANA
CURRIE
MORIARTY
THIRSTY
PATRIARCHS
SELLARS
LOGAN
FISHER
PUNCHEON
KERFORD
PASSAGE
PALANA
TANNER
EMITA
WYBALENNA
REEF
CHAPPELL
BADGER
ARTHURS
WINGAROO
MEMANA
LEVENTHORPE
WHITEMARK
LOCCOTA
ANDERSON
BARRETTS
PRESERVATION
SISTER
KERAUDREN EAST& WEST (2 MAPS)
ROBBINS
MONTAGU
STANLEYNORTH & SOUTH
(2 MAPS)
SMITHTON
LILEAH
TAYATEA
HOLDER
BERYL
BERTHA
DONALDSON
SAVAGE RIVER
MEREDITH
LIVINGSTONE
STRINGER
HEEMSKIRKEAST & WEST
(2 MAPS)
TRIAL
HIBBS EAST &WEST (2 maps)
ENDEAVOUR EAST &WEST (2 maps)
VERIDIANNORTH &
SOUTH (2 maps)
MONTGOMERY
BIRD EAST& WEST (2 MAPS)
CUVIER EAST& WEST (2 MAPS)
WATERHOUSENORTH & SOUTH
(2 MAPS)
TAM O’SHANTEREAST & WEST
(2 MAPS)
Map complete
MINERAL RESOURCES TASMANIADEPARTMENT of INFRASTRUCTURE, ENERGY and RESOURCES
Mineral Resources Tasmania Annual Review 2007/2008
29
The following reports were issued in the Tasmanian Geological Record seriesduring the year:
2006/04 — Geology of the Maydena,Skeleton, Nevada, Weld andPicton 1:25 000 scale mapsheets, by C. R. Calver,S. M. Forsyth andJ. L. Everard.
2007/03 — A late Oligocene basalt fromKeach Hill, near CampbellTown, and its stratigraphicsignificance, by J. L. Everard, F. L. Sutherland andS. M. Forsyth.
2007/04 — Lawrence Vale LandslideInvestigations: implications for landslide hazard assessmentin Launceston, by A. R. Ezzyand C. Mazengarb.
2007/05 — Petrology of the host rocks,including mineralisation andadjacent rock sequences,from the Savage River mine,by R. S. Bottrill andJ. Taheri.
Work continued on adding andupgrading entries on the DOMINFOdatabase.
Library Service
The library supports the coreactivities of MRT by providing
geoscientific information to staff,mineral exploration companies,geotechnical consultants, localauthorities, researchers, students andmembers of the public.
The library continues to be staffedby a full-time librarian, with assistancebeing provided two days per week. The Workplace Standards Tasmaniacollection, although co-located in theRosny Park library, is managedseparately by a permanent part-timelibrarian.
Technical services
The Inmagic DB/Textworks librarymanagement software was updatedduring the year to version 11.00.
The first stage of the library projectto cross-check the DOMINFOdatabase with the card catalogue, andmaking amendments to the database asrequired, was completed. A number ofdeposit names were found to bemissing from the database. The nextstage of the project will involve theinclusion of these deposits in thedeposits authority list and furtheramendments of records as required.
Work is continuing onDB-Textworks database maintenanceand cleanup.
Collection
Sixty-two engineering geologyreports were retrieved from archivedfiles for inclusion in the collection andthe DOMINFO database.
All journal subscriptions wererenewed except for one petroleumsubscription which is no longerrequired and one engineering geologytitle which was replaced by a morerelevant subscription.
Electronic access
The library intranet pages wereupdated. Online access to journalsubscriptions has been provided to alltitles where full-text access is includedin the cost of the print subscription and to a selection of titles only availableelectronically.
Investigations into usingWebPublisher software to make thelibrary catalogue available on theintranet/internet commenced. TheDepartment of Premier and Cabinet isproviding a service to agencies to hostWebPublisher. This will allowDB-Textworks library managementsoftware to be uploaded and the library catalogue to be published on theintranet and/or internet.
Mineral Resources Tasmania Annual Review 2007/2008
30
Unders
ea p
ipelin
e fro
m V
icto
ria
Bass
link
Inte
rconnect
or
to N
atio
nal G
rid
October 2008
144° 145° 146°
146°
147°
147°
148°
148°
43°
42°
41°
40°
40°
41°
42°
WYNYARD
BURNIE
CURRIE
GRASSY
LAUNCESTON
TRIABUNNA
HOBART
— Tasmania —Major Mining and Mineral Processing Operations
and Proposed Projects
— Tasmania —Major Mining and Mineral Processing Operations
and Proposed Projects
KEY
Mineral processor
Mine
Major road
Railway
Transmission line
Gas pipeline
Sea port, airport
Exploration prospector proposed project
DEVONPORT BELL BAY
STRAHAN
WHITEMARK
DR ALLAN BOND & ASSOC.NARACOOPA
heavy mineral sands
UNIMIN AUSTRALIAMOLE CREEK
limestone
CEMENT AUSTRALIARAILTONcement
NYRSTAR HOBART SMELTER, zinc metal, alloys,
cadmium, sulphuric acid
TASMANIA MINESKARA
tungsten, magnetite
AUSTRALIAN BULK MINERALSSAVAGE RIVER
iron ore
TASMANIAN ADVANCEDMINERALS, CORINNA
silica flour
STONEHENGE METALSEAST GRANVILLE
tin
CORNWALL COALKIMBOLTON
coal
COPPER MINES OF TASMANIAMT LYELL
copper, gold
BASS METALSQUE RIVER
zinc, lead, gold, silver, copper
CIRCULAR HEADDOLOMITE, SMITHTON
dolomite
TEMCO, BELL BAYferromanganese,
silicomanganese, sinter
BEACONSFIELD GOLDBEACONSFIELD
gold
CORNWALL COALCULLENSWOOD
coal
CORNWALL COALDUNCAN
coal
AUSTRALIAN BULK MINERALSPORT LATTA
iron ore pellets
OZ MINERALSROSEBERY
zinc, lead, gold, silver, copper
VAN DIEMAN MINESSCOTIA
tin, sapphire, gold
KING ISLAND SCHEELITEDOLPHIN
tungsten (scheelite)
METALS XMT BISCHOFF
tin
MAYDENA SANDSMAYDENA
silica
METALS XRENISON BELL
tin, copper
BASS METALSFOSSEY ZONE
zinc, lead, gold, silver, copper
INDEX MINERALPROCESSORS, HEYBRIDGE
silica flour
RIO TINTO ALUMINIUMBELL BAY
primary aluminiumalloys, paste, powder
TASMANIAN ADVANCEDMINERALS, WYNYARD
silica flour
CORNWALL COALBLACKWOOD
coal
OZ MINERALSAVEBURY
nickel
KANGAROO METALSRIVERSIDE
tin
PROTO RESOURCESBARNES HILLnickel-cobalt
BARRICKHENTY
gold
OZ MINERALSMELBA FLATSNi-Cu-Pt-Pd-Au
MINEMAKERSMOINA
fluorite, Sn, W
TASMANIAN ADVANCEDMINERALS, BLACKWATER
RIVER silicaARTHUR RIVER
magnesite
FRONTIER RESOURCESSTORMONT
Au-BiNARRAWA CREEK
Au-Ag-Zn-Pb
NORTH
0 50 100 km
MINERAL RESOURCES TASMANIADEPARTMENT of INFRASTRUCTURE,
ENERGY and RESOURCES
Mineral Resources Tasmania Annual Review 2007/2008
31
Mineral Sector Overview
Growth in mineral explorationactivity is essential for the futuredevelopment of the mineral sector andfor the economic well-being ofTasmania.
According to the Australian Bureauof Statistics (ABS), expenditure onmineral exploration in Tasmania for the 2007/2008 year was $32.4 million, up37% on the $23.7 million recorded in2006/2007. Tasmania’s share ofexpenditure was down marginally from1.38% to 1.32%.
Tasmania experienced the fourthhighest rate of increase, after WesternAustralia (50%), Queensland (46%) andthe Northern Territory (44%), butahead of New South Wales (32%),South Australia (30%) and Victoria(14%).
Mineral Resources Tasmania datarecord a higher expenditure of $41.54million, of which $20.47 million or 49% was spent on exploration licences. This high figure is gratifying in that it showsa strong commitment by the privatesector to discover the new depositsneeded to sustain the future miningindustry.
Buoyant conditions continued in themining sector in 2007/2008, driven bystrong metal prices, including renewedinterest in iron ore. The mineralextraction and processing sector isTasmania’s largest export industry,accounting for $2.8 billion worth ofproduction and 53% of mercantileexports, up from 49.4% the previousyear.
MRT, by providing information onareas of high mineral resource potential in Tasmania, encourages private sectorexploration which will lead to newoperations coming on stream as theeconomic life of existing operationsdeclines. By ensuring an adequatereturn from our mineral resources, allTasmanians can share the benefits ofour mineral wealth.
Producing mines
Allegiance Mining NL furtherdeveloped the Avebury nickel mine,with the first production ofconcentrate in July 2008 and the firstshipment expected during the following month. During the year, Allegiance was the subject of a successful takeover byZinifex Limited (now OZ Minerals Ltd)which was finalised on 18 July 2008.Recent drill intersections in the EastAvebury area indicate that furthergrowth in the Avebury resource islikely.
Exploration to further extendresources continued at the ZinifexLimited (OZ Minerals) Rosebery mine,with feasibility studies into potentialexpansion of surface infrastructure andconstruction of a new tailings damcommencing. The objective is toextend the life of the mine beyond2030 at current mining rates.
Bass Metals Ltd delivered the firstore from the Que River mine toRosebery in August 2007 and at year’send had established a profitableoperation, with over 37 500 tonnes ofore delivered during the year.
Bluestone Mines Tasmania Pty Ltdcommenced mining tin ore at MountBischoff and reopened the Renison Bell mine in July 2008. A feasibility studyinto recovering tin and copper fromthe Renison Bell tailings dam continued to yield positive results and work hasprogressed to detailed design stage.
Stemcor has sold 90% of AustralianBulk Minerals to a consortium ofChinese companies, headed by theShagang Group. The open-cut mine atSavage River is being expanded with aview to extending mine life by at least25 years.
Production resumed in the highgrade Western Zone of theBeaconsfield gold mine following liftingof the final government restrictionlimiting underground mining. A newremotely operated mining method hasbeen implemented that enables ore tobe extracted without personnelentering active stopes in this part ofthe mine.
Active exploration programscontinued at the Mount Lyell andHenty mines.
Cominex Pty Ltd and SumitomoAustralia Ltd have transferred theirsilica flour tenements in northwestTasmania to Tasmanian AdvancedMinerals Pty Ltd. Silica flour is used tomake LCD screens. The new companyhas recently received Level II permitsto allow for the extraction of 50 000cubic metres a year at the Corinnamine and the new Blackwater mine.Tasmanian Advanced Minerals Pty Ltdcompleted the construction of a silicaflour treatment plant near Wynyard.
New developments
King Island Scheelite Limited hascompleted negotiations with the Hunan Nonferrous Metals Corporation tocommence the redevelopment of theGrassy scheelite (tungsten) mine and at
year’s end was waiting on approvalfrom the Chinese government, the final condition to be satisfied beforedevelopment can commence.
Van Dieman Mines plc hasannounced that it was investigating achange to the proposed processingplant and mining methods at the Scotiaalluvial tin and sapphire mine, nearGladstone. This would result in a delayto commissioning the operation, butwould likely result in a decrease incapital costs.
Proto Resources and InvestmentsLimited has successfully completed ascoping study into operating anickel-cobalt laterite mine andprocessing plant at the Barnes Hilldeposit, near Beaconsfield. Thecompany will continue to conductmetallurgical testing and drilling asprecursors to completing a fullfeasibility study into commencing theoperation.
Maydena Sands Pty Ltd has beenactively seeking markets for theproduction of high quality silica floursfrom Pine Hill, to the west of Maydena. Plans are well advanced for a quarryingoperation with a dedicated treatmentplant on the proposed mining lease.
Mineral exploration highlights
The high level of expenditure onexploration resulted in significant newdrill intersections and announcementsof resources that reflect the diversityof metallic minerals in Tasmania.
Venture Minerals Ltd has announced an inferred resource of 20 milliontonnes at 33% iron at the No. 2 zoneof the Mount Lindsay mine, northwestof Renison Bell. The company alsoannounced a significant drillintersection of iron-tin-tungstenmineralisation at its first hole into theStanley River prospect further west.
Among other iron ore explorers,Iron Mountain Mining Limitedannounced shallow drill intersections of magnetite in the Hampshire district.
Bass Metals Limited has severalsignificant drill intersections ofzinc-lead-gold-silver-copper ore in theFossey Zone, the southern extensionof the Hellyer mine, including 12.75metres of 18.5% zinc, 8.8% lead, 0.6%copper, 273 g/t silver and 2.83 g/t gold.Bass has announced a resource ofremnant ore at Hellyer of 748 000tonnes of 7% zinc, 4% lead, 0.3%copper, 87 g/t silver and 1.3 g/t gold.Preliminary studies into mining the
Mineral Resources Tasmania Annual Review 2007/2008
32
Fossey Zone along with the Hellyerremnants have commenced andpreliminary metallurgical testing hasyielded promising results.
Zinifex Limited reported a 23 metre massive sulphide intersection grading5.6% zinc, 1.1% lead, 38 g/t silver and0.8 g/t gold at the Jupiter prospect, fivekilometres south of Rosebery.
Zinifex also announcednickel-copper intersections at MelbaFlats, east of Zeehan, including 1.9metres of 1% nickel and 0.8% copperand six metres of 0.8% nickel and 0.7%copper at the North Cuni–Genetsprospect; 0.7 metres of 10.8% nickeland 3.81% copper at the NickelReward prospect; and 4.7 m of 1.3%
nickel and 0.94% copper at theDevereaux prospect.
Intensive exploration continued atthe Avebury mine and environs, withnew total resources for the Aveburydeposit announced at 18.18 milliontonnes of 0.95% nickel. There were anumber of promising intersectionsoutside the mine area, including eightmetres of 1.5% nickel at theFoundation Stone prospect, 1.5kilometres to the north of the deposit.
Zeehan Zinc Limited announced anInferred Resource of 1.392 milliontonnes of 2.8% zinc, 3.4% lead and 69g/t silver at the Boss mine near Zeehan.
Stonehenge Metals Limited hasannounced an Inferred Resource of562 000 tonnes of 0.5% tin, 1.4% zinc
and 36.4 g/t silver at the Sweeneyprospect near Trial Harbour and anInferred Resource of 287 600 tonnes of 2.8% zinc, 1.5% lead and 31 g/t silver atthe Sunshine prospect near Zeehan.
Greatland Gold plc has announcedresults from a twelve-hole shallowdrilling program at the Warrentinnagoldfield in northeast Tasmania. Bestresults were three metres of 2.9 g/tgold within intersections of ninemetres of 2.06 g/t gold, and 51 m of0.51 g/t gold at the Derby mine andthree metres of 2.1 g/t gold at theGolden Dyke prospect.
Metals X Ltd has announced aresource of copper within the tin orebodies at Renison Bell of 1.189 milliontonnes of 0.81% copper.
Mineral Resources Tasmania Annual Review 2007/2008
33
Value of the Tasmanian Mineral Industry
Year ended 30 June 2007† 30 June 2008
Commodity Unit Total Quantity Total Quantity
Metallic Minerals
Copper (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 29 322 30 483
Gold (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (kilogram) 3 780 5 532
Iron ore pellets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 1 837 985 2 423 240
Iron (in magnetite) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 98 507 135 629
Lead (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 28 833 29 285
Scheelite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 30 11
Silver (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (kilogram) 98 881 98 663
Tin (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 5 0
Zinc (assayed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 96 447 95 541
Value of Metallic Minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $922 133 500 $803 316 729
Non-metallic, Industrial and Fuel Minerals
Clay – Brick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 22 846 29 323
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 1 200 5 600
Kaolin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 9 373 6 905
Dolomite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 5 645 7 696
Limestone – Agricultural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 112 310 132 825
Cement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 1 701 075 1 856 125
Chemical and metallurgical . . . . . . . . . . . . . . . . . (tonne) 49 469 57 101
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 54 966 62 693
Silica (glass and other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 185 036 205 190
Coal (run of mine) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 639 784 725 228
Coal (washed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 409 716 468 895
Peat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (m3) * 0
Gemstones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (kg) ‡ 0
Value of Non-metallic, Industrial and Fuel Minerals . . . . . . . . . . . . $48 960 674 $55 429 254
Construction Materials
Building stone – Freestone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 167 192
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 14 984 193 501
Sandstone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 827 927
Crushed and broken stone –
Basalt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 1 160 407 904 250
Dolerite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 1 277 517 1 271 318
Limestone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 49 526 62 002
Sandstone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) nil 45
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 172 800 178 917
Gravel (aggregate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 38 210 36 420
Sand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 601 467 626 899
Other road materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (tonne) 2 625 109 2 219 886
Value of Construction Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51 683 067 $71 889 846
Total value with Australian metal prices . . . . . . . . . . . . . . . . . . . . . . . . . $1 022 777 241 $930 635 829
Value added production from Tasmanian and other ores . . . . . . . . . . . . . . . . . $1 800 882 479 $1 726 904 160
(aluminium, cadmium, cement, lead-copper, ferromanganese,
silicomanganese, sinter, sulphuric acid, superphosphate, zinc)
Total value of mining and metallurgical production . . . . . . . . . . . . . . . $2 823 659 720 $2 657 539 989
† Figures for 2007 may vary from previously published results because of late or amended returns
* Peat — production less than one tonne
‡ Gemstones — value only recorded
Mineral Resources Tasmania Annual Review 2007/2008
34
Value of Production, 2006/2007 and 2007/2008
2006/2007 2007/2008 % Change
Tonnes A$’000 Tonnes A$’000
Copper 29 322 - 30 483 - 4.0
Gold 3.8 - 5.5 - 44.7
Iron ore pellets 1 837 985 - 2 423 240 - 31.8
Lead 28 833 - 29 285 - 1.6
Silver 98.9 - 98.6 - -0.3
Tin 5 - 0 - -100
Zinc 96 447 - 95 541 - -0.9
Total metallic minerals - 922 134 - 803 317 -12.9
Non-metallic and fuel minerals - 48 961 - 55 429 13.2
Construction materials - 51 683 - 71 890 39.1
Value added production fromTasmanian and foreign ores
- 1 800 882 - 1 726 904 -4.1
Value of mining and mineralprocessing production
- 2 823 660 - 2 657 540 -5.9
Metallurgical production
Construction materials
Non-metallic and fuel minerals
Metallic minerals
VA
LU
E O
F P
RO
DU
CT
ION
($
'00
0)
1,000,000
500,000
0
1998 1999 2000 2001 2002 2003 2004
YEAR ENDED 30 JUNE
2005 2006 2007
2,000,000
2008
3,000,000
1,500,000
2,500,000
Mineral Resources Tasmania Annual Review 2007/2008
35
Mineral Exploration Expenditure
Year Australian Tasmanian Tasmania as
Expenditure Expenditure % of Australian
($ million) ($ million) Expenditure
1994/1995 893.4 14.9 1.67
1995/1996 960.2 18.8 1.96
1996/1997 1148.6 26.0 2.26
1997/1998 1066.8 20.7 1.94
1998/1999 837.8 11.9 1.42
1999/2000 676.4 8.7 1.29
2000/2001 721.3 9.1 1.26
2001/2002 640.6 4.0 0.62
2002/2003 732.5 4.3 0.59
2003/2004 786.7 7.6 0.97
2004/2005 1028.4 8.3 0.81
2005/2006 1240.7 22.6 1.82
2006/2007 1714.6 23.7 1.39
2007/2008 2461.4 32.4 1.32
Source: Australian Bureau of Statistics — Actual and Expected PrivateMineral Exploration, Australia.
YEAR
Total Australian expenditure
Tasmanian share
Data: Australian Bureau of Statistics
TA
SM
AN
IAN
S
HA
RE
O
F E
XP
EN
DIT
UR
E (%
)
2.5
2
1.5
1
0.5
0
19
98
/19
99
19
99
/20
00
20
00
/20
01
20
01
/20
02
20
02
/20
03
19
97
/19
98
19
96
/19
97
AU
ST
RA
LIA
N E
XP
EN
DIT
UR
E ($
m
illio
n)
2000
1500
1000
500
0
20
03
/20
04
20
04
/20
05
20
05
/20
06
2500
3000
20
06
/20
07
20
07
/20
08
Mineral Resources Tasmania Annual Review 2007/2008
36
Commodity prices and the Australian dollar
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
July
200
6
Aug
. 200
6
Sep
t. 20
06
Oct
. 200
6
Nov
. 200
6
Dec
. 200
6
Jan.
200
7
Feb
. 200
7
Mar
. 200
7
May
200
7
June
200
7
Apr
. 200
7
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
1,200
1,000
800
5,000
1,000
50,000
40,000
10,000
12,000
5,000
3,000
2,000
1,000
1.00
0.60
20,000
10,000
Au$/tonne
Au$/tonne
Au$/tonne
Au$/ounce
Au$/tonneAu$/tonne
US$/tonne
US$/tonne
US$/tonneUS$/ounce
US$/tonneUS$/tonne
8,000
6,000
4,000
July
200
7
Aug
. 200
7
Sep
t. 20
07
Oct
. 200
7
Nov
. 200
7
Dec
. 200
7
Jan.
200
8
Feb
. 200
8
Mar
. 200
8
May
200
8
June
200
8
Apr
. 200
8
600
400
15,000
0.80
0.40
30,000
5,000
1.20
10,000
2,000
4,000 4,000
20,000
25,000
30,000
3,000
Pric
e ($
/oun
ce)
Pric
e ($
/tonn
e)P
rice
($/to
nne)
Pric
e ($
/tonn
e)P
rice
($/to
nne)
Pric
e ($
/tonn
e)
Valu
e ($
)
Gold Copper
ZincLead
Nickel Tin
Australian Dollar : American Dollar
Mineral Resources Tasmania Annual Review 2007/2008
37
— Review of Mineral Sector Operations —
Metallic Minerals
Base Metals
OZ MineralsRosebery Mine
OZ Minerals Limited operates anunderground lead-zinc mine andconcentrator at Rosebery onTasmania’s west coast, employing 196people in the operation.
Mine production
Total underground ore productionwas 739 000 tonnes at 10.48% Zn.Production from the lower levels was630 700 tonnes and came mainly fromK lens and P lens, with a smallercontribution from V lens ore.Production from the upper levelstotalled 108 300 tonnes, withproduction coming from remnantmining in B South, F and D lenses.
Mine development advance was6500 metres, with 830 metres driven in the upper levels and 5700 metresadvanced in the lower mine. It isestimated that 151 000 tonnes of oreand 109 000 tonnes of waste wereproduced. Capital development totalled 3200 metres.
Most of the capital development was required to extend the K and Wdeclines to access future ore zones and provide drilling platforms for resourceinfill and exploration drilling.Development was also undertaken at17K for the ventilation upgrade toincrease the volume of air into themine.
The operating development was in a number of areas including K Lens, Plens, V lens, Lower B and F lens.
Mill
Ore treated totalled 726 800 tonnes from Rosebery and 34 700 tonnes from Que River. The overall grade was11.43% Zn, 3.65% Pb, 0.34% Cu,136 g/t Ag and 1.63 g/t Au. Productiontotalled:
! 142 900 tonnes of zinc concentrate@ 54.52% Zn.
! 34 000 tonnes of lead concentrate at a grade of 63.64% Pb and 1262 g/tAg.
! 7380 tonnes of copper concentrateat a grade of 19.3% Cu, 8.72% Pb,5026 g/t Ag and 49.3 g/t Au.
! 499 kilograms of doré at 35.8% Agand 60.26% Au.
The zinc flotation concentrateproduction of 142 900 tonnes for theyear reflected a decline in Zn feedgrades partially offset by an increase inmilled tonnes. Concentrate grade wasadversely affected by fluctuations infeed, a period where the addition ofreagent to modify pH becameunreliable, and mill equipmentreliability. Restrictions in circuitcapacity proved a bottleneck duringmonths where higher feed grades were experienced.
Lead concentrate production fellbelow that of the previous year,primarily as a consequence of thereduced feed grade. Reagent additionstrategies were extensively modifiedduring the year to address previouslyidentified issues.
Copper concentrate production was sustained but doré production fell to500 kilograms.
Que River ore was toll-treatedthrough the concentrator during theyear following a successful trial inAugust 2007.
Resources and Reserves
Resources and Reserves for theRosebery mine at March 2008 havebeen compiled for end of yearrequirements and are reported usingthe Australasian Code for Reporting ofIdentified Mineral Resources and OreReserves. Mineral resources quoted are
inclusive of the reported ore reservesand show an overall increase of 3.60million tonnes compared with 2007.The main reasons for the increase inthe measured, indicated and inferredresource are the addition of 2.708million tonnes from W lens and 2.381million tonnes from P lens.
The significant increase to theresource at Rosebery was largely dueto resource infill and extension drillingin P, K and W lenses, and to a lesserdegree B North and V lenses.
Total ore reserves at Rosebery have increased by 1.14 million tonnes. Thisis mainly due to resource upgradesfrom resource to reserve in P and Wlens of 1.194 million tonnes. Changesto the reserve were due to depletionsof 0.737 million tonnes by mining.
The decreases in reserves wereoffset by conversion of resources toreserves in W Lens (0.934 milliontonnes) and revision of reserves in PLens (0.26 million tonnes).
Rosebery Mine Lease exploration
A total of 60 900 metres of drillingwas undertaken from both surface andunderground locations on theRosebery deposit to 31 March 2008.
The main target areas forunderground exploration wereextensions to W Lens, Lower P Lens,the K-W Corridor, X Lens and V Lens. In each focus area the mineralisationremains open at depth.
Identified Mineral Resources as at March 2008
Reserves Tonnes Pb Zn Cu Ag Au Fe('000) (%) (%) (%) (g/t) (g/t) (%)
Rosebery:
Measured: 2 938 4.32 15.4 0.54 156 2.4 10.5
Indicated: 3 921 3.36 11.3 0.37 132 1.8 9.4
Inferred: 8 479 3.29 10.3 0.30 114 1.4 7.2
Sub total: 15 332 3.51 11.6 0.36 126 1.7 8.4
South Hercules:
Measured: 977 1.5 3.1 0.1 133 2.44 4.3
Total Resource: 16 336 3.38 11 0.34 126 1.74 8.1
Ore Reserves, Rosebery mine
Reserves Tonnes Pb Zn Cu Ag Au Fe('000) (%) (%) (%) (g/t) (g/t) (%)
Proved 3650 3.1 11.0 0.3 111.2 1.5 6.8
Probable 1309 2.2 7.6 0.2 88.7 0.9 7.4
Total 4959 2.9 10.1 0.3 102.3 1.4 7.0
Mineral Resources Tasmania Annual Review 2007/2008
38
The underground drilling succeededin increasing the measured indicatedand inferred resources of the P, PK and W lenses. Drilling was also successful in extending the inferred resource of XLens.
The surface exploration drilling wasconducted to the north of currentknown mineralisation. Three northingswere drilled targeting along strike ofthe prospective host position andRosebery ore lenses. The extents ofY Lens were delineated with a possiblemerge with X Lens, to be defined inthe coming year. Follow-up drillingfrom the ‘Southern Near Surface’project consisted of delineation ofU Lens.
Whole-rock geochemistry wascompleted for drill holes BH348, JE350and BH351. Down-hole EM studieswere completed for holes BH348,341R, and LB349.
‘Project Horizons’ is an OZRosebery internal project with the aimof increasing the mine life of Roseberybeyond twenty years. The projectinvolves an increase in explorationexpenditure of $19 million over threeyears, and was approved in May 2006.The drilling was conductedconcurrently with the surfaceexploration and took place in the north of the known resources.
The Horizons project also entailsconducting deep drilling fromnumerous underground locations,including the Northern ExplorationDecline. The underground Horizonsdrilling was centred on extensions tothe Y lens, X Lens, and W Lens.
Exploration planning for 2008/2009anticipates considerable further drilling.
Capital expenditure
A total of $44.7 million wasexpended during 2007/2008, withfurther expenditure of $133.3 millionplanned during 2008/2009.
Personnel
A total of 196 people wereemployed at 30 June 2008. Noproduction hours were lost due toindustrial action during the year. Onelost time accident was recorded.
Oz Rosebery Mine obtained AS4801 certification which was achieved inSeptember 2007 and has beenmaintained throughout 2008. TheSafety Management System hasundergone continuous improvementsince this time with the strengtheningof contractor management, increasedtraining and awareness on hazardidentification, revised job safetyobservation program, and additionalcommunication and consultationprocesses.
The Wellness Program hascontinued to align with site safety,health and environment initiativesincluding fatigue management, earlyintervention, stress management andworking in heat, with increasedparticipation from site personnel. Theprogram has also continued to engageemployees, contractors and theirfamilies to promote a healthier lifestyle.
The Medical Referral InjuryFrequency Rate was an improvementover the previous year and issupported by implementation ofmeasures over 2007/2008, includingmanual handling training, first aidtraining, pre- and post- shift hydrationtesting and mental health awareness
sessions. Compulsory fatiguemanagement training also commencedon-site in May 2008, with the view ofdeveloping a sustainable fatiguemanagement plan upon completion ofthe training sessions.
Environment
OZ Rosebery reported fournon-compliance events to theTasmanian Government during2007/2008, which is a 30% decreasefrom the previous year. Capital worksthat commenced in 2006/2007 for anemergency retention system at thefilter plant to prevent futureuncontrolled discharges from the sitehave been completed. These workshave since been modified to enable thecapture of materials emanating fromthe weighbridge. Site drainagemanagement has also become a mainfocus following high rainfall events inAugust and October 2007.
The site has continued to maintainISO 14001 certification to the 2004standard. A triennial audit forrecertification is to be held in February2009.
Significant progress was made inaddressing environmental legacies, with rehabilitation works continuing at theHercules mine site. The stormwaterupgrade project has been completed,with studies continuing on appropriatemethods of acid drainage treatment.Rehabilitation works have continuedduring 2007/2008 through thecontinuation of the revegetation plan(Hercules Assessment Index forRehabilitation), which involved targeted application of lime and fertiliser topromote re-growth.
OZ Rosebery has continued toimplement the annual weed sprayingcampaign, with a significant focus onpampas, English broom, gorse,montbretia and cotoneaster.
Significant works have beencompleted at No. 2 and 5 dams toimprove water quality and commencedirect discharge of water into the StittRiver. Work has also commenced onthe rehabilitation and revegetation ofthe wetlands ponds associated withNo. 2 and 5 dams.
Toxicological testing of Lake Piemanwater has continued, with the use oflocal water flea to accurately determine the impacts of discharges from mineoperations to water on the WestCoast. Different testing methods willcontinue during FY09 with the viewthat other mine sites on the WestCoast may benefit from the results.
Capital expenditure, major projects
Project Approved Amount spent Statusbudget 2007/08
($ million) ($ million)
Bobadil Tailings Dam works 4.4 3.9 Continuing
Pre-feasibility study — Optimisation ROM 4.0 1.752 Continuing
Rosebery ventilation upgrade 30.0 0.37 Continuing
Mine development 19.6 19.6 Continuing
Mobile heavy equipment 3.9 2.31 Continuing
Power reticulation upgrade 2.4 1.37 Continuing
PCS electrical upgrade 1.299 1.152 Continuing
Zinc surge tank replacement & upgrade 1.539 1.2 Continuing
Mine gem co pilot system 1.0 0.93 Continuing
Underground HV cable replacement 1.502 1.424 Completed
Underground pump stations 1.714 1.040 Continuing
Rock breaker upgrade 0.660 0.536 Completed
Crusher building refurbishment 0.505 0.494 Completed
Retention ponds 0.587 0.487 Completed
Acid mine drainage, Hercules 0.602 0.586 Completed
Mineral Resources Tasmania Annual Review 2007/2008
39
Final stages of the toxicityinvestigations are envisaged to initiatethe development of appropriate Water Quality Objectives for the PiemanRiver in the form of a mixing zone inliaison with the Tasmanian government. A mixing zone criteria providesopportunities to measure potentialimpacts on the receiving environmentand provides a realistic measurementof water quality.
Biological monitoring completed onthe site’s discharge points receivingenvironments showed an improvingpicture, similar to last year’s results.Monitoring indicated that there were:
! No significant impacts on the Pieman River ecology from the discharge ofthe main tailings dam.
! The Stitt River continues to reap the benefits of a joint venture with theWest Coast Council to operate therehabilitated tailings dam as a sewage treatment facility. Studies showedsustained aquatic invertebrate life inthe river.
! The Ring River continues toexperience impacts due to historicalmining operations in the region.
Additional spigot points have beeninstalled at the Bobadil tailings dam. AsBobadil is nearing the end of itsoperational life, studies havecommenced into the location andconstruction of a new tailings storagefacility at South Marionoak, locatedacross the Pieman River from Bobadil.This project has gained Board approvaland is seeking various stakeholderapprovals.
Increased focus has been placed ondust monitoring of the site andRosebery township. GHD has beenemployed to undertake a dustcharacterisation survey. Continual highvolume atmospheric samplingmonitoring was undertaken during2008.
Community relations
OZ Minerals, in conjunction withthe Australian Workers Union, maderepresentation to governmentministers and the Premier in a bid toamicably reach a resolution toconcerns over the operation of theRosebery Community Hospital.
It was agreed by all parties tocontinue to work towards resolvingthe issue for the community. As aresult, and in partnership with OZMinerals, the hospital is now open 24hours a day, 7 days a week following afinancial commitment from thecompany for $500,000 over two years.
There is a registered nurse available atall times and a doctor on call.
In August 2007 western Tasmaniaexperienced heavy rainfall that lastedseveral days. This resulted in thewetlands at the No. 2 and 5 damoverflowing into the Stitt River. Pumpswere operational to pump water backto the effluent treatment plant (ETP)and continual monitoring wasundertaken. A crisis management teamwas formed and agreed to deploypeople to monitor the ETP andBobadil, organise shutting down ofunderground pumps to minimise watergoing to the ETP, notify theDepartment of Tourism, Arts and theEnvironment, and continually monitorthe online weather radar.
The company was notified that thestormwater drains were bubbling andblocked and that concentrate waslaying in the carport and yard of ahouse in Howard Street. The occupantof the residence was encouraged tohave a blood lead test as she waspregnant, and it was requested that the children also be tested forprecautionary purposes at thecompany’s cost. The family relocatedto another residence until the cleanupwas completed. A letter drop in thearea advised residents of the recentevents whereby historical lead and zincconcentrate was eroded by runoffwater and washed into adjacentresidences. Blood lead test resultsindicated that two children hadelevated blood lead. Further resultsindicated that levels had not improvedwith removal of the source exposure.
A community open forum, held inDecember 2007, advised that bloodlead testing would be available for anyinterested people during the month.Company representatives met withgovernment delegates on the issue ofelevated lead levels in a Roseberyfamily and remained in regular contactwith the Tasmanian government toensure that they were informed ofcompany activities. A lead fact sheetwas developed for distribution to thecommunity. Results of recent bloodlead tests were presented at a secondforum. Aardvark Cleaning andRestoration was employed toextensively clean family items, linen,curtains etc., and the house and yardwere extensively cleaned. The company continues to work with the family.
Bass Metals Ltd
Bass Metals Ltd, through the QueRiver Mining Alliance with MancalaMining Pty Ltd, operates the Que River
mine near Waratah in westernTasmania. An average of twenty-sevenpeople are employed.
Mining operation
Que River is an open-cut mine,recovering remnant ore left by theprevious underground operationconducted by Aberfoyle Resources inthe 1980s. Production for the yearcomprised 43 800 tonnes of ore mined at 11.2% Zn, 6.1% Pb, 0.3% Cu, 163 g/tAg and 2.9 g/t Au. Waste movedtotalled 553 000 bank cubic metres.
A total of 37 960 tonnes of ore wasdelivered to the OZ Minerals Rosebery mine for processing at 11.9% Zn,6.7% Pb, 0.3% Cu, 161 g/t Ag and3.0 g/t Au.
In addition to the remnantresources that are currently beingmined, three areas (S Lens, QR32 andNico) contain virgin resources notpreviously mined. These areas arebeing assessed with a view to futuremining.
Resources
Total mineral resources are 701 000 tonnes at 5.4% Zn, 2.7% Pb, 1.2% Cu,83 g/t Ag and 0.88 g/t Au. Thesecomprise:
! Measured: 56 000 tonnes at 2.1% Zn, 0.7% Pb, 1.7% Cu, 69 g/t Ag, 0.34 g/t Au;
! Indicated: 458 000 tonnes at 6.0%Zn, 3.0% Pb, 1.2% Cu, 88 g/t Ag,1.0 g/t Au;
! Inferred: 187 000 tonnes at 5.0% Zn,2.8% Pb, 1.0% Cu, 74 g/t Ag, 0.78 g/t Au.
Total mining reserves are 78 400tonnes at 9.0% Zn, 4.6% Pb, 0.8% Cu,121 g/t Ag and 2.6 g/t Au.
Exploration
A review of the company’s MineralResource and Reserves base at QueRiver was undertaken in July 2008following mine depletion at PQ andS-Lens deposits as part of the initialmining operation. Whilst some minoradditional drilling was undertaken inthe project area no other modifications to the Mineral Resources have beenfinalised.
Further drilling is planned in the2009 financial year aimed at testingtargets prospective for new lenses,such as south of S-Lens, and todelineate potentially mineableresources in close proximity to theexisting underground workings.
Mineral Resources Tasmania Annual Review 2007/2008
40
Human resources
The operation employs an averageof 27 people, and works an average of5000 man hours per month. Employees are sourced from local communities atWaratah, Tullah and Rosebery, with alarge proportion travelling from thenorth coast areas of Burnie andUlverstone on a daily basis. Somecontractors travel from the greaterLaunceston region and stay atRosebery while on shift.
Zero lost time and medicaltreatment injuries were recordedduring the year.
Environmental management
The operation reported noenvironmental incidents during theyear. The greatest environmentalchallenge facing the project istreatment of acidic water generatedfrom both the old undergroundoperation and the current waste rockdumps. Since commencement of mining there has been a significantimprovement in the legacy issuessurrounding the mine with a majorreduction in heavy metals entering theSouthwell River.
Intec Ltd
This company employs 48 people inits tailings retreatment operation at the Hellyer mine.
A total of 1.129 million tonnes oftailings was mined from the tailings dam using a suction dredge. Lead-zincconcentrate production was 52 600tonnes containing 19 200 tonnes ofzinc, 6600 tonnes of lead and tenkilograms of silver.
Reserves at November 2006 were10.8 million tonnes at 2.8% Zn, 3.0%Pb, 0.16% Cu, 88 g/t Ag and 2.6 g/t Au.
Capital expenditure comprised $2million on a new transformer.
A tailings bank impoundment wasconstructed within the tailings dam.
Copper
Copper Mines of TasmaniaPty Ltd, Mount Lyell
This company operates the MountLyell underground copper mine andconcentrator at Queenstown,employing 288 people in operations.
Production
Ore mined totalled 2.565 milliontonnes, with 2.512 million tonnes being
milled, producing 100 800 tonnes ofconcentrate containing 28 tonnes ofcopper, 16 000 ounces of gold and135 000 ounces of silver. Waste minedtotalled 39 600 tonnes.
A total of 2400 metres ofdevelopment was advanced,2100 metres in ore and 300 metres inwaste. Drilling totalled 1000 metres.
Resources and Reserves
The Prince Lyell estimated mineralresource at 31 March 2008, at 1% Cucut-off grade, was:
Prince Lyell below 1390 RL 5.99 Mt
Prince Lyell cave 2092–1465 2.45 Mt
Western Tharsis 11.77 Mt
King Lyell copper clays 1.2 Mt
Crown 3 crown pillar 0.61 Mt
Total resource 22.020 Mt
The Prince Lyell estimated orereserve at 31 March 2008, at 1% Cucut off grade, was:
In situ ore 4.21 Mt at 1.506% Cu
Secondary ore 5.42 Mt at 1.16% Cu
Surface stockpile 50 000 t at 1.27% Cu
Total reserve 9.68 Mt at 1.31% Cu
Employment
The company employed a total of101 people in management,maintenance and administration. Afurther 187 contractors wereemployed in production, transport,treatment and maintenance.
Environmental programs
Copper Mines of Tasmania hascontinued with its environmentalimprovement program. The legacy ofan old site designed to drain direct tothe river has been a challenge.Additional sediment retention ponds,drainage diversions, installation of anautomated truck wash facility,flocculent dosing of critical stormwater drains, pumping of stormwater totreatment areas and improvedmanagement of ore spillage havecontributed to an improvement instormwater quality. Ongoing strategicplanning included a comprehensivereview of the site closure plan, astrategic vegetation survey,development of a new heritagemanagement plan, and studies to assess opportunities to improve the site’swater and energy efficiency.
The natural revegetation of much ofthe historic disturbance of the MountLyell mining field is progressing well,although the potential for bushfireimpact on infrastructure, heritagefeatures and revegetation has become a
significant hazard. The vegetationsurvey was designed to assist withplanning fire management on site. CMT has active programs for increasingcommunity and site personnel’sawareness of environmental issues andenvironmental management at MountLyell.
During the year CMT providedinformative tours to tourism operators in Queenstown and Strahan to improve their understanding of the legacyenvironmental issues and the effortsbeing made by CMT and the State torectify the impacts from past miningpractices.
Copper Mines of Tasmania hascontinued to assist the State with itsprogram to treat acid drainage fromhistoric Mount Lyell mining activities.
Capital expenditure
A total of $2.747 million wasprovided for capital expenditure. Major items were $1.798 million for declinedevelopment, $172,000 for afire-fighting vehicle, $165,000 for arefuge chamber, and $107,000 for newpumps to upgrade the 1615 pumpstation.
Gold
Beaconsfield MineJoint Venture
Production at the Beaconsfield goldmine was suspended after a rock fall inApril 2006. Limited production hadrecommenced by 30 June 2007, withthe staged recommencement ofunderground mining operationscontinuing during 2007/2008.Development production and stopeproduction from the Eastern Zone ofthe mine provided 12,843 ounces ofgold production in the December 2007 half year, with stope production fromthe Western Zone of the minerecommencing in December 2007utilising a new remote mining methodin which no personnel enter theproduction stopes.
Production
By year end the mine had returnedto normal production levels and oreprocessed in June exceeded a rate of240 000 tonnes per annum for the first time since mining recommenced.A rate of 300 000 tonnes per annum isbeing targeted by increasedtele-remote loading and backfillingcapacity. Orders have been confirmed
Mineral Resources Tasmania Annual Review 2007/2008
41
for two new, larger Elphinstone R1600loaders.
Mine production during the first sixmonths of the year was restricted tosill driving (development in ore) andstoping production from the EasternZone. Following acceptance of theWestern Zone Case for Safety by theChief Inspector of Mines on28 September 2007, necessaryrehabilitation work and theestablishment of footwall drivesrequired for the new mining methoddelayed firing of the first stoping panelin the Western Zone until lateDecember 2007.
The newly introduced remotefootwall-driving mining method, inwhich no personnel enter theproduction stopes, was successfullyintroduced throughout the second halfof the year, providing access to highgrade ore on multiple levels in theWestern Zone of the mine.
A total of 141 205 tonnes of orewas mined for the year. The oretreatment plant operated normallythroughout the year, although at lessthan full capacity as mine productionramped up. Ore treated totalled141 139 tonnes at an average grade of7.71 g/t Au, producing 33,570 ouncesof gold.
Exploration
A diamond drilling program hascommenced with the objective offurther increasing gold reserves bytesting the Tasmania Reef below theF21 Zone (the bottom of the currentresource) over an interval of 300vertical metres between 1200 and 1500 metres vertical depth from surface. The program will take up to a year to attain the drill density necessary to estimate a JORC compliant measured reserve.
Exploration around the Beaconsfield mine focussed on two longdiamond-drill holes targeting the North Tasmania Reef and testing prospectivemine series host beds that have neverbefore been drilled. A small RC drilling
program was completed in an areaimmediately north of the mine. Further drilling will be undertaken afterencouraging results were obtained.
Beaconsfield Gold acquired theLefroy Resources Limited explorationtenements covering much of thenortheast Tasmanian gold province,with the company planning tosystematically drill targets at Lefroywith the aim of developing several open pits from which ore would be truckedto Beaconsfield for processing, utilisingspare capacity in the ore treatmentplant. The company also acquired twotenements in the historic Mathinnagoldfield.
Barrick (Henty) LimitedHenty gold mine
This company operates anunderground gold mine and treatmentplant near Queenstown.
Gold production for the year was2078 kilograms, with 1468 kilograms of silver also being produced. Wastemined totalled 83 000 tonnes.
Resources and reserves
Reserves at 30 June 2008 were595 000 tonnes at 7.983 g/t Au,containing 152,900 ounces of gold. The reserves are based on a gold price ofUS$750 and the resources are basedon a gold price of US$900 according to the direction of Barrick Corporate.
The reserves increased by 5386ounces in 2008. This figure accountsfor the 8028 ounces that weresterilised from reserves withoutmining. Sterilisations arose fromchanged understanding and subsequentdowngrading of ore zones throughincreased knowledge from flat-backingand sludge-hole information in relationto Mount Julia ore blocks. Costevaluations and subsequentdowngrading of Darwin Mid andDarwin North ore blocks also tookplace. The Tyndall Zone has beenadded to reserves following a
favourable re-evaluation with newdrill-hole data.
Total resources outside reserveswere 84 000 tonnes at 7.055 g/t Au(containing 19,000 ounces of gold).This comprised an indicated resourceof 56 000 tonnes at 6.688 g/t Au(containing 12,200 ounces) and aninferred resource of 27 000 tonnes at7.819 g/t Au (containing 6,800 ounces).
Employment
Total employment of staff andcontractors was 167, with 19 employed in administration, 76 employed onsurface in the concentrator,maintenance and geology, and 72employed underground.
Environment and major projects
There has been continued focus onenergy and water management at theHenty gold mine during 2007/2008.A number of initiatives implementedduring the year have resulted inimprovements in the efficiency of thewater supply infrastructure around thesite. These initiatives included:
! Modifications to the pumping system supplying water to underground toreduce reliance on water sourcedfrom the Henty River, and makemaximum use of recycled waterpumped from the mine.
! Installation of a larger diameterpipeline between the mine watersettling pond and the plant rawwater tank to make better use ofrecycled water and reduce relianceon water drawn from surfaceimpoundments.
The potential underground settlingprocess, which was identified last year,is still under consideration, but thestope which is to be used did notbecome available until recently due tochanges in the mining schedule. Thisproject is due to be implemented in the second half of 2008. Onceimplemented, this project should yielda significant energy saving due to lowerpumping requirements in dewateringthe mine and pumping the treatedwater back underground.
Other areas in which energyconsumption savings have been realised are:
! Installation of a new compressor forthe Inco cyanide destruction circuit,replacing two older, less efficientunits.
! Installing timers on heaters in thesite change house.
Identified Mineral Resource, Tasmania Reefas at 30 November 2007
Measured Resource 307 000 tonnes @ 17.8 g/t Au (175,000 ounces contained gold)
Indicated Resource 503 000 tonnes @ 15.1 g/t Au (244,000 ounces contained gold)
Inferred Resource 63 000 tonnes @ 12.2 g/t Au (25,000 ounces contained gold)
Total Resource 873 000 tonnes @ 15.8 g/t Au (446,000 ounces contained gold)
Estimated Ore Reserve, Tasmania Reef
Proved Reserve 392 000 tonnes @ 12.0 g/t Au (151,000 ounces contained gold)
Probable Reserve 703 000 tonnes @ 8.60 g/t Au (194,000 ounces contained gold)
Total Reserve 1 095 000 tonnes @ 9.80 g/t Au (346,000 ounces contained gold)
Mineral Resources Tasmania Annual Review 2007/2008
42
! Further adjustments to the pitch ofthe blades in the main undergroundventilation fan.
The annual bio-monitoring survey of the Henty River upstream anddownstream of operations againconfirmed that the mine is having noimpact on stream fauna. This was thefifteenth year that the mine has carriedout this survey, which is a goodindicator of the mine’s performancewith respect to managing pollutantlevels in discharge water.
Capital expenditure
Capital expenditure was $2.2million. Major items included a mobilejaw crusher ($792,000), R100 usedLDH ($288,000), and $340,000 spenton the exploration program.
Iron ore
Australian Bulk Minerals(Savage River mine)
Australian Bulk Minerals operates an open-cut iron ore mine at Savage River and a pelletising plant and ship loadingfacility at Port Latta.
With the implementation of theMine Life Extension Plan, ABM tookdelivery of a new fleet of three Hitachi3600 shovels, an Hitachi 1900excavator, and thirteen Cat 789 haultrucks.
Mining has been concentrated inmoving old waste material of NorthWest Dump and stripping old wasteand intact rock along the west andsoutheastern walls of North Pit. Orecontinues to be mined from theExtension 3 pit floor and is beingblended with low grade stockpiles.
The main capital works in the minewere associated with the new In-PitWorkshop Facility and the effects of amajor flood event that occurred inearly August 2007.
Construction of the new workshopwas nearing completion by the end ofJune 2008. The Reliability Centre withits fuelling services was fully operational and the workshop was being fitted out.
ABM Conveyor Crossing 1 wasexpanded to allow highway fuel trucksand the new Cat 789 truck fleet accessto and from the pit. As the highway fuel trucks could not negotiate the originalmine access route, which snakes downunder the conveyor, a new workshopaccess road was constructed.
In August 2007 a major three-dayrainstorm caused the overtopping and
destruction of the main eastern rivercrossing and badly damaged thewestern crossing. The eastern crossingwas replaced with a roller-compactedconcrete structure that can overtopduring major flow events and has beendesigned for a 1 in 80 year event. Thisstructure is capable of handling the oldfleet but there is inadequate room forthe Cat 789 trucks to pass the adjacent crusher/conveyor.
The western crossing thereforerequired the capacity to pass the newshovel and truck fleets, which wereassembled on the south side of theriver, as well as the highway fuel trucks. The old crossing was rebuilt with atriple box culvert and aroller-compacted concrete structure.This crossing is design for a 1 in 100year event and can also be overtopped.
All of the runoff from the mill area,the Emergency Tailings Dam, parts ofB Dump and all of Centre Pit aretransferred across this structure in asmall box culvert arrangement fortreatment in South Lens. A newhydrocarbon separator and weirarrangement has been constructed atthe South Lens outfall.
Operations
Mine production at Savage River was 0.649 million cubic metres of ore and11.644 million cubic metres of waste.The total volume mined was 12.294million cubic metres.
The concentrator crushed 5.821million tonnes of ore and milled 5.501million (wet) tonnes, for theproduction of 2.535 million tonnes ofconcentrate.
Production at Port Latta totalled2.423 million tonnes of pellets, with33 220 tonnes of concentrate and264 760 tonnes of pellets beingstockpiled.
Sales comprised 2.346 million tonnes of pellets, 42 150 tonnes ofconcentrate and 171 700 tonnes ofiron ore chips.
Mineral Resources andOre Reserves
Mineral Resources and OreReserves have been estimated for theSavage River magnetite deposit, at theend of March 2008.
The increase in overall reserve isdue to the completion of updateddesigns and schedules for an expansionin North Pit.
Drilling
Since 1 July 2006 ABM hascompleted a total of 2510 metres ofHQ diamond drilling and 397 metres of reverse circulation percussion (RC)drilling to update the North PitResource model. The diamond drillingcomprised eleven holes with theobjective of upgrading areas of inferred resource within the North PitExtension 4 design to increase thereserve. All holes produced orientatedcore using triple tube methods, withthree holes subjected to detailedgeotechnical logging. The objective ofthe RC holes was to test thedistribution of Tertiary basalt on theridge top to the north and northeast of the current North Pit.
Employment
A total of 522 people wereemployed in the operation includingcontractors. At Savage River 385people were employed in the mine,concentrator and in the township. AtPort Latta and Burnie 137 people wereemployed in operations andadministration.
Savage RiverTotal mineral resources, measured, indicated and inferred
North pit 174.3 million tonnes @ 52.9 (% DTR)
South Deposit 29.11 million tonnes @ 42.9 (% DTR)
Centre Pit South 54.93 million tonnes @ 46.6 (% DTR)
Centre Pit North 57.34 million tonnes @ 52.6 (% DTR)
Centre Pit South Extension 3.67 million tonnes @ 45.5 (% DTR)
Total 323.23 million tonnes @ 50.5 (% DTR)
Total ore reserves proven and probable
North Pit 107.73 million tonnes @ 50.5 (% DTR)
Centre Pit South 10.97 million tonnes @ 43.4 (% DTR)
South Deposit 8.45 million tonnes @ 43.9 (% DTR)
Total (including stocks) 131.02 million tonnes @ 48.9 (% DTR)
DTR (Davis Tube Recovery) is a measure of the percentage of magnetite mineral thatwill be recovered into concentrate from magnetite ore.
Mineral Resources Tasmania Annual Review 2007/2008
43
Environmental and
rehabilitation activities
Weed management continuedaround the mine and town site, withbroom growth reduced considerablycompared to the previous year.
Mine waste management continuedwith in situ classification andsegregation of waste rock. Waste fromNorth Pit is stockpiled at the Broderick Creek Dump. The ‘flow through’ hasbeen extended further north and thedump extended to the west.
Remediation at Port Latta hascontinued, with ABM funding aCoastcare program from Rocky Capeto East Stanley. A joint project wascompleted with the Circular HeadCouncil, Parks and Wildlife Service andthe Cradle Coast Authority at The Nut at Stanley.
Dust deposition at Cowrie Point and Crayfish Creek is measured by highvolume air sampling with selective PM10
inlets. The annual averages were33.8 mg/m3 at Cowrie Point and22.16 mg/m3 at Crayfish Creek.
ABM operates under the GoldamerePty Ltd (Agreement) Act 1996 whichrequires the company to operate tobest practice environmentalmanagement. The Savage RiverRemediation Program is a jointprogram between the Department ofEnvironment, Parks, Heritage and theArts (DEHPA) and ABM with theobjective of capturing and treating 65%of the site’s copper load andconsequently not provide an acutelytoxic aquatic environment. Thecompany sets internal water qualityobjectives for emissions to the SavageRiver to achieve the objective by:
! Providing a centralised watermanagement system so that as much mine water as possible is dischargedfrom a central settlement pit.
! Managing tailings decant water tokeep it above pH 6.5 with alkalinitygreater than 15 mg/L.
! Increasing the alkalinity in the Savage River through innovativeengineering, mine planning andwater management as much aspracticable with the goal of keepingthe river’s alkalinity above 15 mg/Land therefore decreasing the legacycopper toxicity.
Appropriate management andmonitoring systems are in place andABM is in current compliance with therequirements.
Capital expenditure
Capital expenditure for the year was $28 million. Major items included thedevelopment of the in-pit workshops($14.6 million), fire system upgrade,and extensions to accommodation inthe town.
Tasmania Mines NL,Kara mine
This company operates the KaraNo. 1 and smaller Eastern Ridgeopen-cut mines and a processing plantsoutheast of Hampshire in northwestTasmania.
The operation produces up to200 000 tonnes of magnetite ore froma northerly-plunging synclinalskarn-style mineralised deposit, withmining operations proceeding fromsouth to north and becoming graduallydeeper. Scheelite concentrate isproduced as a by-product of themagnetite mining and processingoperations.
Mining operations consist of themechanised excavation of weathered(oxidised) ore and overburden, andblasting of fresh ore and waste withproduction blast holes. The mineutilises uniform ten metre benchheights with 70 degree bench faces and an operating bench slope angle ofbetween 42 and 45 degrees. In a majorchange all ore mined is now crushedwithin the open pit by a mobile crusher and subsequently moved by truck fromthe open cut to a stockpile areaadjacent to the processing plant. Waste material mined is excavated from thewestern wall cut-back program andfrom the active benches at thenorthern end of the open cut and isstacked as permanent dump material in the mined-out southern end of theopen cut.
The Kara No. 1 open cut containsfourteen years of proven and probablereserves at a production rate of200 000 tonnes of magnetite ore peryear. Additional potential resourceshave been indicated by previous andongoing exploration drilling programsimmediately to the north of thecurrent reserves. Tasmania Mines is inthe process of re-evaluation of theresources at Kara No. 1 which will addsignificantly to current reserveestimates.
Production
A total of 191 400 tonnes ofmagnetite ore was mined from which93 400 tonnes of magnetite
concentrate and 14 700 kilograms ofscheelite concentrate was produced.
A total of 289 000 tonnes of wastematerial was mined in the open cut.The majority of the waste mined wasmoved to the south end of the opencut for permanent storage, with smallquantities used on roads or forrehabilitation around the site.
Exploration
A drill program incorporating inexcess of 2000 metres of diamonddrilling to define resources north of the current Kara No. 1 open cut has beencompleted and assay, resource andreserve evaluation for the programcontinue. A further program ofresource drilling of the northern KaraNo. 1 area will take place next year,together with a definition drillingprogram for the Kara magneticanomaly.
Resources/Reserves
Ore reserve estimates for KaraNo. 1 are based upon depletion of anore reserve estimate made inDecember 2006. Total proven reserves at 1 July 2008 are:
! Fresh magnetite-bearing ore:1.883 million tonnes >30% Fe,including 141 000 tonnes of>30% Fe, 0.55% WO3;
! Oxidised magnetite-bearing ore:393 900 tonnes >30% Fe, including 38 000 tonnes of >30% Fe, 0.55% WO3.
Total probable reserves comprise:
! Fresh magnetite-bearing ore:516 000 tonnes >30% Fe, including 5000 tonnes of >30% Fe,0.55% WO3;
! Oxidised magnetite-bearing ore:92 000 tonnes >30% Fe, including 8000 tonnes of >30% Fe,0.55% WO3.
The indicated resource estimated forKara North 266 comprised:
! Total fresh magnetite-bearing ore:425 000 tonnes >30% Fe, including175 000 tonnes >30% Fe,1.1% WO3.
! Total oxidised magnetite-bearing ore:275 000 tonnes >30% Fe, including55 000 tonnes >30% Fe, 0.9% WO3.
The probable reserve at Eastern Ridgeis 43 300 tonnes >30% Fe, 0.45% WO3.
Employment
Seventeen people are employedfull-time directly in operations,together with three full-time and twopart-time staff employed inadministration. Contractors are
Mineral Resources Tasmania Annual Review 2007/2008
44
employed in drilling, blasting,earthmoving and maintenance, thenumber depending on the varyingdemands of the operation.
Environment
All rehabilitation, environment andpollution control objectives arecurrently achieved by adherence to the 2006 EMP. A Mine Closure Plan hasbeen produced for Tasmania Mines byPitt and Sherry who are also currentlyreviewing the environmental impact ofany potential future productionincrements.
Major projects
An application for a 44 hectaremining lease has been made to permitthe planning and construction of afuture tailings storage facility tocommence.
Capital expenditure
A $5 million capital equipmentprogram continues to be implementedto improve capacity and reliability ofthe current crushing, milling andtreatment process. Major items are amobile crusher ($1.6 million) and theconstruction of a ball mill ($519,000).
New developments
The acquisition and implementationof equipment to upgrade theprocessing plant and support plannedproduction levels with improvedcapacity — allowing campaignprocessing or higher rates ofproduction — continues and is planned to be incorporated into the operationswithin the next 6 to 12 months. Plansfor the open cut, incorporating newreserve additions, will be completedduring 2008, allowing effectivelong-term life of mine planning toproceed.
Nickel
Allegiance Mining NL/OZ Minerals Limited,Avebury mine
Allegiance Mining NL continued todevelop the Avebury nickel mine westof Zeehan. Allegiance was the subjectof a successful takeover by ZinifexLimited (now OZ Minerals Ltd) whichwas finalised on 18 July 2008.
There was no concentrateproduction during the year as thebeneficiation plant was still undergoingminor commissioning in some areas,such as the regrind circuit. The
production ramp-up was reported tobe ahead of schedule. Mining continued, with 120 100 tonnes of ore and 78 500 tonnes of waste being produced.
Mine development
A total of 4700 metres wasadvanced in mine development, 820metres of which was advancing thedecline. Level development occurred in the Avebury, Central and Viking orezones. An additional 300 metres wasraise bored for ventilation.
Mineral resources
The total mineral resourceestimated at December 2007, at 0.7%Ni cut-off grade, was 14 million tonnesat 1.04% Ni, containing 145 000 tonnes of nickel. This comprised:
! Inferred resource: 6.88 milliontonnes at 0.99% Ni;
! Indicated resource: 4.9 milliontonnes at 1.09% Ni;
! Measured resources: 2.22 milliontonnes at 1.06% Ni.
The total mineral resourceestimated until December 2007, at0.4% Ni cut-off boundary, was 18.180million tonnes at 0.95% Ni, containing172 000 tonnes of nickel. Thiscomprised:
! Inferred resource: 9.76 milliontonnes at 0.88% Ni;
! Indicated resource: 6.05 milliontonnes at 1.01% Ni;
! Measured resources: 2.37 milliontonnes at 1.03% Ni.
Exploration
A total of 14 600 metres of diamond drilling was carried out underground,with 16 900 metres being drilled onsurface. Exploration concentrated onthe Viking Extended and East Aveburyprospects. Minor drilling wascompleted at the Pontiac prospect.
Employment
At year’s end the companyemployed 56 people and 210contractors. The largest sections weremining, which employed 95 people, and construction which employed 92.
Environmental protection
Avebury has a positive waterbalance, requiring excess water to bedischarged to Comstock Creek.Extensive work has been done over the reporting period to further improvethe quality of the water beingdischarged to the creek.
The water treatment systemcomprises the settling pond, tailings
storage facility, wetlands and waterstorage dam. During the reportingperiod, a flocculent addition systemwas designed and installed to increasethe effectiveness of the settling pond in removing suspended particulate matter (SPM) from the discharge water. Priorto the commissioning of the flocculentsystem, SPM levels ranged from 7 to35 mg/L in the discharge water, withlevels dropping to 1 to 4 mg/L aftercommissioning.
Structural work was undertaken inthe wetlands in November to increasethe residence time of the water, whichshould further improve the waterquality, particularly nitrogen andsoluble metal levels. The northwest cell of the wetlands was excavated toincrease the flow path, as that areaformed a backwater when the waterlevels were low. The first cell on theeastern side of the wetlands was alsoexpanded and baffles were constructed to slow down the water.
Further monitoring is beingundertaken to determine theeffectiveness of these measures.
Capital development
Development of the mine andinfrastructure required the expenditure of $256.8 million during the year. Some major items included undergrounddevelopment ($32 million), tailings dam wall ($16 million), grinding andfloatation structure ($17 million), ballmill ($9 million), crusher structure($4 million) and fine ore bin($4 million).
Tin
Bluestone Mines TasmaniaPty Ltd — Renison Bell andMount Bischoff
In March 2006, a Tasmanian TinProjects review was conducted andplanning commenced for the restart ofthe Renison Bell operations and thecommencement of operations atMount Bischoff. The planned MountBischoff operation was recognised ascritical to achieving short-termeconomies of scale in ore processingdue to the lack of development in theRenison underground operations.
Approval for the Mount BischoffDevelopment Proposal andEnvironmental Management Plan wasobtained on 24 October 2007, withsite activity commencing immediately in accordance with permit conditions.
Mineral Resources Tasmania Annual Review 2007/2008
45
Development activities at Renisoncommenced on 7 May 2008, with thepurchase of two Atlas Copco M2Djumbos, four Atlas Copco loaders, andfour Hitachi 30 tonne trucks.
The Mount Bischoff crusher for runof mine ore is situated at Renisonadjacent to the concentrator. Surfaceplant commissioning was underway on30 June.
Production
A total of 16 000 tonnes of ore at0.88% Sn was won from the MountBischoff Project open pit during theyear.
No ore was produced from Renison mining operations during the year, andno tin-in-concentrates were producedfor sale.
Waste mined from Mount Bischofftotalled 281 000 bench cubic metres,with HC and potentially acid-formingwaste dumped in the Browns Facehistoric workings after completion ofdump preparation. Neutral waste wasutilised for formation of the HappyValley waste dump keel drain andmiscellaneous sheeting in accordancewith permit and management planconditions.
At Renison, 14 000 tonnes of wastewas mined from capital development in the South Renison and Radio-Romulus- King Billy ore zones. A total of 126metres of decline development wascompleted in the South RenisonDecline (SRD), with 103 metres ofcapital waste development in the SRD1540 level and 1054 m3 of capital waste stripping completed in the 1840 Radiolevel.
Employees
As at 30 June 154 employees and125 contractors were employed onTasmanian Tin Operations sites, with31 employed at Mount Bischoff, 57employed in mining at Renison, 44employed in processing, 125 employedin maintenance and 22 employed inservices and administration. Totalbudgeted Bluestone Mines TasmaniaPty Ltd employees will be 206 upon full employment.
Environmental and pollutioncontrol initiatives
Monitoring programs and frequencywere maintained throughout the yearto ensure continuity of data for pointsource and ambient water qualitymonitoring. A Closure Plan for theRenison lease was completed duringthe year. Weed and pathogen controlmeasures were continued across the
Renison mining lease and in RenisonBell township over summer 2007/2008, specifically targeting gorse, montpellierbroom and blackberry. A damsurveillance report was completed atRenison by GHD Engineers in October 2007, in expectation of completion ofthe final two metre lift on tailings damC over the 2007/2008 summer period.
The Mount Bischoff carbonateNorth Valley drain was nearingcompletion at the end of June 2008,with extension of the old MRTlimestone drain across to a finalpolishing pond adjacent to the Waratah gun club via an aqueduct embankment.The drain was upgraded with newlimestone.
Pollution control initiatives wereimplemented as part of plantrefurbishment activities, with improved capability for separate layereddeposition of sulphidic reactive tailingsand acid-neutralising or inert tailings toallow progressive capping. Control andneutralisation of plant water initiativeswere also in progress.
Major projects
The Tasmanian operations(comprising the Mount Bischoff andRenison projects) commenced re-startactivities in December 2007.
At Mount Bischoff completed workincluded site preparation and roads,infrastructure development, waste
dump construction, run-of-mine padconstruction, tourist area construction, fuel bay installation, and workshopconstruction. Upgrade andimprovement of the MRT carbonatedrain for site water management andnorth-side old workings waterneutralisation was mainly completed.
Underground operations completedat Renison included South Renisondecline development, servicesextension, installation of a secondegress ladder-way in South Renisonfrom the 1551 metre level to 1669metre level, and developmentflat-backing in the Radio ore body onthe 1840 metre level.
Commissioning of the Renisonconcentrator after significant capitalupgrade and addition of new equipment to enhance metallurgical performancewas in progress.
Dewatering of the North Renison(Rendeep) areas down to the 1475metre level was also in progress. Thewater level is on hold while the NorthRenison decline rehabilitationproceeds.
A 100 room West Coast Village,located in Zeehan, was also completed.
Capital expenditure
A total of $18.5 million wasexpended on capital at the Tasmanianoperations to June 2008. Thiscomprised:
Identified Mineral Resource estimate,consolidated as at 30 June 2008
Measured
Renison Bell 645 000 tonnes at 1.87% Sn, 224 000 tonnes at 0.47% Cu
Mount Bischoff 2 900 tonnes at 0.82% Sn
Rentails 18 176 000 tonnes at 0.42% Sn
Sub-total 18 823 900 tonnes at 0.47% Sn
224 000 tonnes at 0.47% Cu
Indicated
Renison Bell 1 400 600 tonnes at 2.01% Sn, 767 300 tonnes at 0.32% Cu
Mount Bischoff 1 405 300 tonnes at 1.103% Sn
Sub-total 2 806 000 tonnes at 1.56% Sn
767 300 tonnes at 0.32% Cu
Inferred
Renison Bell 2 351 000 tonnes at 2.04% Sn, 386 000 tonnes at 0.66% Cu
Mount Bischoff 1 071 600 tonnes at 0.7% Sn
Sub-total 3 422 600 tonnes at 1.63% Sn
386 000 tonnes at 0.66% Cu
Totals
Renison Bell 4 396 600 tonnes at 2.01% Sn, 1 377 200 tonnes at 0.44% Cu
Mount Bischoff 2 479 800 tonnes at 0.94% Sn
Rentails 18 176 000 tonnes at 0.42% Sn
Total 25 052 500 tonnes at 0.75% Sn
1 377 300 tonnes at 0.44% Cu
Mineral Resources Tasmania Annual Review 2007/2008
46
! Plant and equipment at Renison.
! Infrastructure at Renison and Mount Bischoff.
! Rentails project work.
! Renison mine development.
! Mount Bischoff mine development.
! West Coast Village construction.
New developments
Rentails Project
The Rentails project is based uponthe re-treatment of 18.2 million tonnes of historical tailings, averaging 0.43% Sn, produced from the Renison mine overthe past 40 years. Work undertakenincluded:
! Rentails feasibility study advanced,with pilot plant testing of bothmineral dressing andpyro-metallurgical processescompleted.
! Pyro-metallurgical test work wasconducted using Ausmelttechnology, with results indicatinghigh quality tin fume and coppermatte products were attainable from the process at expected metalrecoveries.
! Drilling of A and B tailings dams wasconducted in March 2008 to obtainsamples for variability test work,with sulphur grade critical in sizingof flotation plant and particle sizecritical in sizing of grinding plant.
Bluestone intends to continue toadvance Rentails towards completing adetailed design in the last quarter 2008, as well as continuing to refine andoptimise test work and opportunitiesfor the project. GR EngineeringServices were retained in February2008 to complete the detailed designprecedent to accurate projecteconomic analysis and boardpresentation in the last quarter of the2008 calendar year.
Renison Copper Project
The Federal-Bassett fault containsincreasing copper values with depth,particularly as chalcopyrite. Anidentified mineral resource estimatewas completed for copper for RenisonBell in 2007.
Laboratory test work confirmed that a saleable chalcopyrite concentratecould be produced from the sulphideflotation circuit at Renison Bell, and acapital project was initiated to installadditional equipment for maximisingcopper recovery and grade into a dried
filtered concentrate product. Thecopper is present mainly in associationwith cassiterite in the fault, allowing afree carry of the copper through toflotation and hence attractive economic conditions. Silver values of up to400 ppm have also been recorded inthe copper concentrate.
Expectations for commissioning ofthe copper circuit at Renison Bell arefor early in the last quarter of 2008.
Van Dieman Mines
Over the past year the company’sfocus has been on operations at theScotia and Endurance mines nearGladstone in northeast Tasmania,although exploration and resourcedevelopment has also been carried outacross all of the company’s seventeentenements. There was no productionduring the year.
Highlights of the year include:
! Scotia mine development approval.
! Central clean-up facilitydevelopment approval.
! Erection of gravity treatment plant.
! Formation and adoption of a‘Revised Mine Development Plan’ atScotia.
! Endurance DPEMP lodged.
Scotia mine
The Scotia Development Proposaland Environmental Management Plan(DPEMP) was approved by theTasmanian Government in May 2007and the Dorset Council in June 2007.Follow-on permits relating toenvironment and construction activities were issued by various authoritiesduring the following three months.
On receipt of approvals thecompany immediately commenced thescheduled pre-mining site works. These activities included the upgrade ofexisting access tracks, freshwater andtailings dam-site geotechnical andconstruction works, mains powerconnection, and treatment plant andsite office infrastructure construction.
Development approval forcommissioning of the centralconcentrate clean-up plant wasreceived in August 2007.
The gravity treatment plant arrivedfrom the USA in November 2007 insixteen containers. Construction began immediately on the prepared site.
A comprehensive review of allaspects of the Scotia project wasinstituted in March 2008. The mainfindings were that the proposed mining methods and significant components ofthe original process plant design forScotia (and also planned for Endurance) were inappropriate, given the degree of water-saturated material encounteredin initial pre-stripping of theoverburden.
Subsequently the companyannounced the findings and keyrecommendations of the review whichresulted in the formation of a RevisedMine Development Plan. The planincorporated significant changes toaspects of mining and processing,including:
! investigations to reduce further riskby dewatering, trial mining and bulksampling;
! examination and trials of potentiallysimpler methods to deliver wet orefrom the mine to the plant;
! modifications to the primaryprocessing plant and tin shedconcentrating facility.
Implementation of the Revised MineDevelopment Plan has resulted insignificant capital savings and will resultin lower operating costs, but willfurther delay commissioning of theplant, now estimated to occur inNovember 2008.
Endurance mine
The Endurance project will be amajor beneficiary of the modificationsbeing implemented at Scotia, being able to take full advantage of these benefits.
The Endurance DPEMP was lodgedin March 2008 and is currently underconsideration by the regulatoryauthorities, but on the understandingthat there are likely to be variations inthe final mining method adopted.Subject to permit approvals andchanges to the mine plan, it is nowexpected that the Endurance projectwill commence production in aroundmid 2009.
Employment
At year end the total number of fulltime and contract employees was 28,with nineteen employed in operationsand nine employed in administrationand management.
Mineral Resources Tasmania Annual Review 2007/2008
47
Reserves and Resources
A further conclusion from the Scotia project review was that the basis uponwhich the previous management teamhad determined the JORC reserves and resources was not consistent withcurrent best practice. The company has embarked on a limited (approximately1000 metres) confirmatory drillingprogram to validate the previously
determined JORC reserves. Theproposed drilling program will initiallyfocus on the Scotia Project resourceand is scheduled to commence inmid-September 2008.
Capital expenditure
At year end, total capitalexpenditure on major projects wasnearly $5.4 million. Major items at
Scotia were plant, equipment andinfrastructure ($4.4 million), damworks and road construction. A totalof $108,000 was spent on the tincleaning facility.
Industrial Minerals
Limestone anddolomite
Beams Bros Pty Ltd
Beams Brothers operates alimestone quarry at Flowery Gully anda dolomite quarry at Cressy, employing a total of 21 people. Production oflimestone and dolomite during the year totalled 150 000 tonnes, comprising57 000 tonnes of metallurgical gradelimestone, 14 000 tonnes of lime andlimestone for water treatment/neutralisation, 66 000 tonnes of finelimestone and dolomite for theBeaconsfield Gold mine, 4600 tonnesof dolomite by-product and 8400tonnes of limestone mixing stone.Extensive reserves exist at the Flowery Gully site, while the Cressy lease has amedium reserve level.
During the year 18 000 m3 of wastematerial was removed from theFlowery Gully and Cressy quarries.Dump pads at both the sites werelevelled for rehabilitation works.
Major capital expenditure during the reporting period included equipping allcrushing plants with computercontrols, which has enabled operatorsto be reassigned to jobs with less safety hazards.
Circular Head Dolomiteand Trading Co. Pty Ltd
The Circular Head Dolomite andTrading Company employs 15 peoplein its dolomite quarry at Smithton.Total production consisted of over90 000 tonnes of materials, including52 000 tonnes of screenings, 37 000tonnes of dolomite powder and 9000cubic metres of ready-mix concrete.
Major capital expenditure during2007/2008 included a new cementmixer and a new spreader. An upgradeof the existing powder plant iscurrently being investigated.
Unimin Australia LimitedTotal production from the Mole
Creek quarry included 19 054 tonnesof stone, 36 651 tonnes of aglime and49 661 tonnes of lime. Overburdenwaste removed to the dump sitetotalled 363 707 tonnes. The equivalent of 30 staff was employed throughoutthe financial year. Twenty of thesewere in the quarry and lime plantoperation, one in maintenance, three in administration and six in managementand sales.
Environmental
A Forest Practices Plan wasapproved for the removal of treesaround the dump area on the easternside of the site. An additional 77 ha ofland was purchased on the eastern side of the site to facilitate the construction of a new discharge settling pond and to increase the boundary distance fromneighbours.
Kiln environmental performanceremains within limits due to the newbaghouse. Some modifications havebeen made to the baghouse to increase efficiency.
No land has been rehabilitated atthis time. The total area disturbed bythe operation remains approximately470 000 m2.
Reserves/Resources
Kilnstone was a blend of mediumand low quality to maximise resourceslife and meet production qualitytargets. Whole-of-life stripping ratioand reserves of high, medium and lowquality continue to place the life of themine at greater than twenty years. AnExploration Licence was granted alongthe western side of the site andexploratory drilling will commencenext year.
Major projects and newdevelopments
One of the three forty-tonne dumptrucks was replaced during the year, a
new 60 tonne excavator was acquired,and work commenced on a new 30metre weighbridge.
Silica
Index Mineral ProcessorsThis company employs 27 people in
its fine-grained silica sand processingplant near Burnie. Production for theyear was 10 400 tonnes of fine and24 000 tonnes of coarse product.
Reserves/Resources
The Index Group purchases rawmaterial silica sand from TasmanianAdvanced Minerals. A number ofpotential silica deposits have beeninvestigated by the company during the year, but no sites have been selected.
Major projects and newdevelopments
There was no progress on adevelopment application to sell a thirdproduct, presently deemed a wastematerial. Research and developmentwork has demonstrated the potentialto enhance the business viabilitysignificantly. It is anticipated that theutilisation of this product will allowsales from the site to match the full60 000 tonnes nominated in theDevelopment Proposal andEnvironmental Management Plan.
There are no major projects inprogress or planned.
Capital expenditure
Capital expenditure was utilised insustaining projects and for minorimprovements.
Environmental
The Burnie operation siteenvironmental management system was accredited to AS/NZS ISO 14001:2004in April 2008. There were noenvironmental breaches or communitycomplaints during the year.
Mineral Resources Tasmania Annual Review 2007/2008
48
Safety
The company recorded one losttime injury, with an absence of twodays.
Ceramics
Austral Bricks TasmaniaTwenty-one individuals and one
contractor are employed by AustralBricks Tasmania. Production for the
2007/2008 financial year totalled over26 000 tonnes of bricks and pavers,which included the export ofapproximately 7000 tonnes of productto New Zealand, Japan and Korea.
Minor rehabilitation has beenundertaken at both the Longford andRelbia pits. More substantial workswere performed at the GreenhillForest site. The annual environmentalaudit was successfully completed.
An automated packaging line wascompleted in February 2008. Significant
refurbishment of the kiln andassociated infrastructure is due to becompleted prior to February 2009.
Ample reserves of material areavailable at all sites.
K&D Bricks & PaversThis company continues to
manufacture clay bricks and pavers inthe Hobart suburb of New Town.
Fuel Minerals
Cornwall Coal Company NL
The Cornwall Coal Companyemploys 88 people in coal mining,washing and transport in the FingalValley and at Hamilton.
Production continued throughoutthe year using a combination of bothbord and pillar and Miniwall techniques. Almost all underground production byCornwall Coal from the Fingal Valleywas concentrated within the DuncanColliery, with a negligible amount fromBlackwood 4.
Duncan Colliery
The new widehead continuousminer with onboard bolting rigssuffered serious problems with itsperformance and has been parked since January 2008. The Miniwall system wasinstalled for only one block at DuncanColliery but had mixed fortunes, withpoor roof control being the mainproblem. The machine was removed to surface and its future is uncertain.
An attempt was made to accessreserves to the north of the oldworkings but failed due to animpassable dyke. Duncan is nearing theend of its economic life but due to thedelays in starting Blackwood 4 the mine will be producing from areas of lowyield to extend its life until the end of2010.
Blackwood Colliery No. 3
The rehabilitation has beenmonitored throughout the year and isprogressing.
Blackwood Colliery No. 4 entry
Electrical distribution services wereinstalled and commissioned togetherwith air and water supplies. Miningstarted in December 2007 andimmediately hit problems, with the fandrift striking a fault after some twentymetres and other faults being found as
driving of the roadway continued. Thebelt road was driven 140 metresthrough the same set of faults andconnected to the fan roadway. Workstopped in June and the workforce was sent to Duncan to try to access thenorthern reserves.
While the mine was shut down inlate July there was an unplannedmovement of ground at the high wall.Work will restart in late 2008.
Huntsman No. 2 open cut
The rehabilitation has beenmonitored throughout the year and isprogressing favourably.
Cullenswood open cut
Cullenswood produced coalthroughout the period usingcontractors to remove overburden and stockpile the coal on site prior totransport to the Fingal washery. TheCullenswood reserve is being used toaugment the supply from Duncan and is blended to satisfy customer qualityrequirements.
Kimbolton Coal
The difficulties associated with theraw product from Kimbolton haveprecluded its use at any of ourcustomers without the need forbenefaction of the raw coal at theFingal washery. The distance betweenthe Fingal and Kimbolton sites rendersthe transport of the raw product,together with the cost of production,uneconomic unless combined with abackloading arrangement.
Production
Production of raw coal for2007/2008 totalled 725 490 tonnes.This coal was sourced from theDuncan (430 100 tonnes),Cullenswood (200 500 tonnes),Blackwood 4 (4600 tonnes) andKimbolton (90 200 tonnes) mines.
Washery throughput of raw coaltotalled 712 463 tonnes to produce436 544 tonnes of saleable coal at awashery yield of 61.3%. Coal salestotalled 453 600 tonnes.
Approximately 275 900 tonnes ofreject materials were deposited at theDuncan reject dump.
Employment
The company employed 88 people(including contractors) in theoperation. This comprised 68 peopleemployed in underground mining,processing and administration, with afurther twelve contractors employed in coal transport and eight in open-cutoperations.
Capital expenditure
A total of $1.5 million was spent tostart Blackwood No. 4 mine, with afurther $1.0 million being spent up until the end of June 2008 developing theportals.
Rehabilitation
Rehabilitation at the Huntsman andBlackwood 2 and 3 areas continued tobe monitored throughout the year.
Other
The instability in regard to transport distribution from the Fingal Washerysite is still a cause for serious concernto the company.
The Department of Justiceconducted an audit of the underground and washery operations.
Cornwall Coal was host to theannual Tasmanian Mines RescueCompetition. Seven teams competed in this years event. Cornwall Coal wasthe overall winner and Leigh Spilsburywas awarded Best Captain for the fifthyear in a row.
Mineral Resources Tasmania Annual Review 2007/2008
49
Construction Materials
BIS Industrial LogisticsDuring the 2007/2008 financial year
BIS Industrial Logistics operated fivemining leases at Launceston, Ridgley,East Devonport and St Helens. In lateJune 2008 BIS acquired an additionaleleven mining leases associated withFieldwicks Pty Ltd.
The Launceston BIS operationincorporates four open-cut quarries,which have been operational since thelate 1970s. The main office and quarryare located at Western Junction,approximately twelve kilometres southof Launceston. The Ridgley quarry,located approximately fifteenkilometres south of Burnie, has beenoperating since 1988. BIS utilises fixedand portable crushing equipment toproduce pavement, screened sealingand drainage materials from basalt,dolerite and quartzite.
A total of eighteen employees andcontractors were employed by BISIndustrial Logistics during the past year, including administration staff, full andpart-time operators andsub-contractors. With the addition ofthe new operations, employee numbers have increased to 43.
Crushing production figures for allfive sites during the 2007/2008 financial year totalled 585 000 tonnes,comprising 561 000 tonnes of basalt,15 000 tonnes of dolerite and 9000tonnes of quartzite. A combined totalof 40 000 m3 was removed asoverburden at the two basaltoperations.
Ongoing progressive rehabilitationcontinued across all BIS sites, withmajor improvements in reducingairborne dust from fixed plant fromchanges to operational procedures andupdated dust suppression equipmentand practices.
BIS Industrial Logistics maintainedtri-certification to AS9001, AS4801 and ISO14001 during the year. Thiscertification incorporates complianceto Department of Infrastructure,Energy and Resources specificationsand Australian Standards for pavementmaterials and aggregates, and Australian Standards for occupational health andsafety and environmental compliance.
At the end of June 2008 the BISIndustrial Logistics quarry operationsexceeded 13 years since the last LostTime Injury (LTI), with the Ridgleyquarry operation achieving 14 yearssince the last LTI.
Boral Resources (Tasmania)Limited
Boral Resources operates hard-rock quarries at Bridgewater, Launceston,Flowery Gully and Nook, and a sandoperation at South Arm. The companyemploys a total of 25 personnel.
During the 2007/2008 financial yearBoral experienced strong demand forconcrete sand and aggregates, with theroad base market improving innorthern Tasmania over previous years with a number of road projects underconstruction. The market in southernTasmania remained slow.
Production for the year exceededone million tonnes of material, onethird of which was concrete aggregates, asphalt and spray seal markets, 8%sand, and the remainder road baseproducts.
All quarries have extensive reservesbased on current demand levels. Theconstruction of a haul road at theLaunceston quarry to enable access toadditional reserves has commenced,with extraction of the additionalreserves expected to commence in2009. Realignment of the haul road atNook is also being undertaken.
The Tasmanian Government hasexpressed interest in acquiring land atthe Bridgewater quarry (currently used as buffer) for the construction of theBrighton Transport Hub. While a finaldecision is yet to be reached,encroachment of any type within thebuffer area represents a significant riskto the security of the quarry reserve.
During the year the Launcestonprimary crusher was upgraded toaccommodate hard dolerite stone.The new crusher has reduced thedowntime and maintenance associatedwith the old crusher. A new tertiarycrusher was installed at theBridgewater quarry to enable bettermanagement of fines production forconcrete, asphalt and road baseproducts. A new 966 loader wasacquired for the Flowery Gully quarryduring the year, and the purchase of asimilar loader for Launceston isproposed in the coming year.
The dust suppression measures atthe Bridgewater quarry are beingupgraded, with a dust extraction unitbeing being installed on the quarryscreen house in an effort to reduce the amount of dust being emitted to theatmosphere. Dust captured by this unit will be recycled back into the silos foruse in road base products.
The business has been experiencingdifficulties complying with the newDIER specification for PolishedAggregate Friction Values (PAFV). DIER has increased the specification forPAFV from 45 in 2006, to 48 in 2007,and 53 in 2008.
Environmental Management Plans(EMP) were completed for two of thefour operations, with revisions to theremaining EMPs currently in progress.Rehabilitation is underway at a numberof redundant operations aroundTasmania.
Dennis Fieldwicks Pty LtdDennis Fieldwicks Pty Ltd operates a
variety of quarries across thenorthwest and east coast of Tasmania,employing 20 people within theoperations. During the 2007/2008reporting period, 25 000 tonnes ofconcrete products and 57 500 tonnesof road gravel were produced.Approximately 100 m3 of material wasstripped as waste across the leases.
Rehabilitation works have beencompleted within three mining leases.Compacted ground has been ripped,pre-stripped top/subsoil re-spread,water runoff controls installed andweed control undertaken. It isanticipated the formal surrender ofthese mining leases will be undertakenshortly.
Duggans Pty LtdDuggans Pty Ltd operates six mining
leases and precast concrete production factories at Cradoc in the Huon Valleyand at Launceston. Approximately sixty staff are employed across theoperations. Production of rawmaterials totalled 93 500 tonnes,consisting of 64 000 tonnes of roadmaterials, 27 000 tonnes ofconstruction materials and 2500 tonnes of construction sand.
Major projects completed orprogressed during the reporting period included the Barretta waste transferstation at Kingston, various subdivisiondevelopments at Huonville, Cygnet and Franklin, precast projects forCentrelink, the Mt St Canicedevelopment, Kingston Plaza and theTasmanian Hockey Centre.
A new J35 Jaques Gyracone crusherhas been purchased for the Cradocquarry at an estimated cost of$450,000. The new crusher is expected to be fully operational by December
Mineral Resources Tasmania Annual Review 2007/2008
50
2008. Transition points have also beeninstalled in crushing plants.
An application was lodged for thetransfer of an existing mining leasefrom a local council to Duggans. Thissand lease was successfully transferredin July 2008.
No waste materials were strippedor extracted during the year. Recyclingof concrete waste has continued andmaintenance has been undertaken onsite sediment ponds.
Fieldwicks Pty LtdDuring late June 2008 eleven of the
twelve mining leases held by FieldwicksPty Ltd were acquired by BIS IndustrialLogistics. Twenty personnel wereemployed by Fieldwicks Pty Ltd at theend of June.
Production for the year totalled25 000 tonnes of concrete productsand 58 000 tonnes of road gravel.
Rehabilitation works werecompleted within three mining leases,with the intention to surrender theseleases in the near future. Rehabilitationworks have included ripping compacted ground, re-spreading strippedmaterials, weed control and installingrunoff controls.
FR & CM Lazenby and SonThe FR & CM Lazenby and Son sand
extraction operation at South Armemployed the equivalent of fourfull-time and one part-time personnelduring the 2007/2008 financial year.Production during this period totalled12 600 tonnes. Considerable reservesare estimated within the two miningleases.
No waste materials were producedduring the reporting period, with 0.5hectare of rehabilitation works beingundertaken.
GL & DH Males Pty LtdGL & DH Males operates a sand pit
at South Arm and a retail operation inSouth Hobart, employing threefull-time and seven casual staff.
Production from the South Armmining lease consisted of 88 000tonnes of concrete sand, 15 000 tonnes of coarse (washed) sand, 3000 tonnesof horticultural sand, 2000 tonnes ofbedding sand and 1000 tonnes of sandy loam. Approximately 500 tonnes of top sandy soil were stripped from thecoarse sand pit during extraction, withabout 500 tonnes of silt being
reclaimed from the settlement dam,enabling the dam to be re-used.
Future sources of dune sand willinclude re-working of old areas.Because of lower processing rates thisresource is expected to last for five toseven years. Coarse sand reserves areexpected to maintain supply for thenext ten to twenty years.
The road transport fleet wasupdated during the year, with thepurchase of one new and onesecond-hand loader. A new screeningplant is currently being sourced.
Rehabilitation works at the SouthArm lease are continuing in line withthe site’s Environmental ManagementPlan. The dunes on the southeasternside of the property have beenre-contoured and seeded with Acaciasophorae, Acacia floribunda andMyoporum insulare. Transplanting to the foot of the dune is also continuing.
Gunns Forest Products P/L Gunns Forest Products Pty Ltd
manages and operates around 50licensed quarries across Tasmania,providing road construction andmaintenance materials forapproximately 6000 kilometres offorest road. New construction ofgravelled forest roads in 2007/2008totalled 121 kilometres. The totaldirect cost of the road constructionand maintenance programs for the year was over $10 million.
Quarrying and road constructionwere performed by contractors underthe supervision of company staff. In the peak of the construction period,approximately 60 people were engaged in quarrying and road work, reducingto approximately 20 people during thewinter months when most activity wasroad maintenance.
Eight full-time staff are currentlyemployed in quarrying works. Duringthe 2007/2008 financial yearapproximately 107 000 tonnes ofmaterial was mined and removed fromlicensed quarries.
All licensed quarries are subject tothe provisions of a management planwhich includes a requirement toprogressively rehabilitate and restoremined-out sections of quarries,including ongoing remodelling ofbenches and housekeeping to cleansumps and drains.
Gunns Forest Products Pty Ltd has a certified Environmental ManagementSystem compliant with ISO 14001. Inaddition the company’s forestryoperations (including quarrying and
road activities) and forest managementsystem is certified compliant with theAustralian Forestry Standard. Allforestry activities, including quarryingand road works, are subject to annualindependent third party audits.
Hanson ConstructionMaterials Pty Ltd
Hanson Construction Materials hasfifteen full-time and one part-timeemployees at their operations inHobart, Calder and Potato Hill(George Town). During the 2007/2008reporting period 150 000 tonnes ofaggregates, 152 000 tonnes of roadmaterials and 73 000 tonnes of sandwere produced across the threeoperations.
A Development Proposal andEnvironmental Management Plan hasbeen drafted for the proposedextension to the Hobart quarry. Thisplan has been a high priority as accessto quarry reserves has become limited.The Shoreline Drive project is nearingcompletion. Demand for high PAFVvalues at the Hobart quarry has lead to an internal capital application for acrusher upgrade.
Rehabilitation works have continued in all areas of the Hobart quarry, withcontractors engaged to eliminatepampas grass. Overburden strippinghas been stockpiled for futurerehabilitation work within the Hobartquarry, while the Calder rehabilitationplan has also been completed withsouthwestern pits one and two 80%rehabilitated, while the west central pit rehabilitation is complete.
HBMI Pty LtdHobart Blue Metal Industries (HBMI)
operates a dolerite quarry at LeslieVale, fourteen kilometres south ofHobart. The company has fourteenpermanent employees in production,two with the mobile equipment, andthree in the weighbridge and supportstaff. A further 30 people are employed as subcontractors for materialdeliveries, drill and blast activities, andmaintenance as required.
Production for the year totalled740 000 tonnes, comprising 680 000tonnes of road base material, 50 000tonnes of concrete and asphaltaggregate, and 10 000 tonnes forlandscaping.
Stripping has been prioritised overthe past twelve months, withapproximately 10 000 cubic metresextracted. This will provide enough
Mineral Resources Tasmania Annual Review 2007/2008
51
open area for the next fifteen years ofextraction.
Major projects supplied over thisperiod were the Harvey NormanHome Makers Centre at Cambridge,Esperance Road, Holyman Drive andnumerous subdivisions.
Over $2.5 million dollars have beeninvested in upgrading the secondarycrushing operation. An MVP 450 conecrusher, 20 ´ 8 three-deck screen, baghouse and overhead gantry crane havebeen installed. These have all beeninstalled in one building with the aim of minimising dust and noise emissions, aswell as providing for ease ofmaintenance.
Industrial Sands & Silica Pty Ltd
This company operates quarries atMarshalls Creek (Port Sorell) andNorthdown in northern Tasmania.Two people are employed. Productionfrom the quarries totalled 6100 cubicmetres of road gravel, 6300 tonnes ofsilica, and 1180 tonnes of shingle sand.
Island Resources Pty LtdIsland Resources employs four
full-time individuals and two to threecontractors at four quarries innortheast Tasmania. Employees carryout tasks such as screening, washingand blending of sands, and operatingthe drying plant. Contractors areemployed to cart products back to themain lease for processing.
Production from all four operationsincluded 47 000 tonnes of general sand, 26 000 tonnes of concrete sand,21 000 tonnes of dried sand and19 000 tonnes of road gravel.
Resource investigations across Island Resources leases have conservativelyestimated reserves of raw materials tobe in excess of 30 million tonnes.
Lloyds NorthLloyds North employs ten people at
the Kimberleys Road and Riggs Roadquarries near Ulverstone.
Production from the Riggs Roadquarry totalled 909 000 tonnes ofbasalt. The oversize rock reductionprogram and excavator replacementcontinued into 2008. Revision of theexisting mining plan is currently beingundertaken. The Environmental
Management Plan review has beensubmitted and approved by theEnvironment Division, whilecompliance with the EnvironmentalProtection Notice (EPN) wasmaintained.
Production at Kimberleys Roadconsisted of 65 000 tonnes of aggregate and 28 000 tonnes of base coursematerial. Compliance with theEnvironment Division’s EPN alsocontinued. Plant safety upgrades andprocess improvements continued into2008.
Norske Skog BoyerNorske Skog operates quarries
primarily to maintain State forest andprivate roads used for timberharvesting and transport to supply itsBoyer paper mill. During the yearapproximately twelve kilometres ofnew forestry roads were built, withupgrades and maintenance undertakenon existing roads.
Production for the year consisted of 36 000 tonnes of raw, crushed andscreened material. The majority ofmaterial is won by dozer/excavator,with only one drill blast beingundertaken during the past year.Minimal drill/blast is expected in thefuture. Norske Skog out-source labourand machinery in the operation of their quarries, with one full time NorskeSkog employee supervising contractors.
Due to the variation in demand forquarried material (based on thelocation of new roads required forharvesting operations and roadmaintenance, a function of the locationof harvesting operations and transportroutes and weather) it is anticipatedthat demand in future years will besimilar to current levels, but willreduce slightly over time. Reserves inthe existing quarries are unknown butshould be sufficient for the next decade of operations.
Approximately one hectare oftopsoil and waste materials has beenstripped and stockpiled during routineextraction during the year.Rehabilitation works on one quarry site have been completed and are awaitingclearance by Mineral ResourcesTasmania.
RNB Trading Pty LtdDuring the 2007/2008 financial year
RNB Trading employed eight personnel
at their sand extraction sites at SouthArm, George Town and Llanherne.Production from these sites consistedof 125 000 tonnes of building sand and150 tonnes of bedding sand.
Extraction activities at the HopeBeach sand pit at South Arm werecompleted, with operations transferred to the Llanherne site from May 2008.Capital expenditure on the newLlanherne operation exceeded$580,000.
A level two application, under theEnvironmental Management and PollutionControl Act 1994, was granted for thePotato Hill operation at George Town.This resource was purchased byHanson Construction Materials in April 2008.
Stornoway Quarries Pty Ltd
Stornoway operates two quarries atRaeburn and Birralee, in northernTasmania. The operations produced230 000 tonnes of structural fill androad and pavement materials, mainlyfor council and forestry operations.There were three full-time and onepart-time employees during the year.
Treloar Transport
Treloar Transport Companyoperates the Shackley Hill quarry atSheffield, employing four full-time staffand a contract driller and shot-firer.Production for the twelve monthperiod totalled 155 000 tonnes ofmaterial, with sales comprising 60 000tonnes of sub-base material, 60 000tonnes of base course, 10 000 tonnesof pit-run gravel and 20 000 tonnes ofother products.
Major projects completed or inprogress during the year have includedproduction of base course andsub-base gravel for the Bass Highwayduplication at Ulverstone. Main capitalexpenditure included an upgrade of the crusher, including improvements to the secondary crusher to increasethroughput.
A safety audit was completed for the quarry operations and therecommendations are now beingimplemented. Acidic drainage produced through the oxidation of pyritecontinues to be treated with crushedlimestone and settling ponds.
Mineral Resources Tasmania Annual Review 2007/2008
52
Mineral Processing Operations
Cement Australia HoldingsPty Ltd
A total of 150 people are employedfull time at the mine and cement plantat Railton. Production of cementclinker from the plant kiln totalled1.115 million tonnes. This clinker wasused to produce 1.26 million tonnes ofcement, 1.1 million tonnes of whichwas shipped to Victoria and New South Wales via the Port of Devonport.Of the remaining production, 132 579tonnes was utilised in the localTasmanian bulk and bag markets. Totaldispatches from the Railton factorywere 1 242 744 tonnes.
Major projects and newdevelopments
Further expansion of the NorthernCutback and the Western Cutback isplanned for the 2008/2009 financialyear. Completion of stage two andfurther progress on stage three of theSite Water Management Plan isexpected during 2008/2009.
Capital expenditure
Capital expenditure for the2007/2008 period totalled $15.183million. Projects underway orcommissioned during the periodinclude:
! The high viscosity fuel plant,commissioned in February 2008 at acost of $3.5 million.
! Kiln precipitator replacement with abag filter, to be commissioned in the first quarter 2009 at a cost of$19.2 million.
! Advanced mine dewatering, at a cost of $1.3 million.
! Spent Cell Liner project, at a cost of $3.13 million, to burn wasterefractory lining from the Bell Bayaluminum refinery.
Environmental
Rehabilitation of the new minecontinued, with the batters on thesoutheast waste dump pushed down to 55–70 mRL. A total of 3305 cubicmetres of topsoil derived from theNorth Cutback and Magazine Buttressareas was stripped and stockpiled forfuture rehabilitation. Work on the SiteWater Management Plan continuedduring the 2007/2008 period. Stage one of the plan involved lining over twokilometres of Browns Creek drain toimprove water quality and wascompleted in late 2007.Stage 2 groundwater bores are at an
advanced stage of completion. Stage 3discharge water treatment is in designstages and is expected to be completed in late 2009.
Annual weed control programsincluded slashing and spraying declaredweeds. Monthly groundwater borechecks and water quality testing wereongoing throughout the year.
Nyrstar Hobart Pty Ltd
Nyrstar Hobart has a workforce of506 employees and 91 contractors inits zinc smelter on the western bank of the River Derwent at Risdon.Production for the year consisted of247 000 tonnes of zinc and 399 647tonnes of sulphuric acid.
Reserves/Resources
Nyrstar source the majority of itsconcentrate requirements from withinAustralia, predominantly from the OZMinerals Century and Rosebery mines.Nyrstar Hobart is also focussed onsourcing a higher percentage ofsecondary zinc oxides to increaseflexibility of feed to the site.
Major projects and newdevelopments
Measures are being pursued toincrease production volumes during the remainder of 2008. Knowledge sharingacross Nyrstar has allowed a targetedtechnical and engineering focus on theproduction process. Implementation ofnew equipment and processmodifications developed in-house haveresulted in a substantial improvementof the recovery rate from 91.4% in thesecond half of 2007 to 94.5% in thefirst six months of 2008, without theneed for substantial investment,allowing for increased zinc productionfrom the same level of concentrateinput. This was achieved at a capitalcost of less than $0.5 million, asubstantial saving on the previouslyindicated capital cost of $35 millionallocated to implement the goethiteprocess and improve the recovery rateto 96%.
Capital expenditure
Operating costs in the first half of2008 reduced by 6% compared to thesecond half of 2007, predominantly as a result of a new ten-year electricitycontract which came into effect on1 January 2008. Major capitalexpenditure in 2007 included thedeferred expenditure for the No. 5
roaster shutdown ($2.8 million),automated skimming on the castinglines ($2.2 million), and a stormwaterretention pond ($2.1 million). Capitalinvestments during 2008 have includedthe successful planned shutdown of the roaster and acid plant, the design of aprecipitator to eliminate the visible tailgas stack plume, and automatedskimming on casting lines.
Safety
At the end of 2007 the 12-monthrolling average Lost Time InjuryFrequency Rate (LTIFR) was 4.1.
Environmental
Key environmental initiativescompleted in 2007 included installationof additional stormwater retentioncapacity and finalising arrangements forthe treatment and disposal of mercurycontaminated wastes. Significantprogress has also been made withplanned environmental projectsaddressing historical groundwater andby-product stockpiles andcontaminated waste issues.
Rio Tinto Alcan —Bell Bay
The Bell Bay aluminium smelterdirectly employs a total of 574individuals and 56 contractors.Production during the 2007/2008financial year totalled 179 207 tonnes.
Environmental
Numerous pollution controlinitiatives were introduced, includingeliminating the use of chlorine from the site, utilisation of real-time fugitivehydrogen fluoride monitoring,undertaking an energy efficiencyopportunity assessment, and watermanagement plan and site waterbalance.
Major projects and newdevelopments
Total capital expenditure for theyear totalled $20.85 million. Inductionfurnace upgrades were made during the year. The use of spent cell lining, awaste product from the smeltingprocess, has been successfully trialed as an input material in the manufacture ofcement at the Cement Australia site atRailton.
Mineral Resources Tasmania Annual Review 2007/2008
53
Tasmanian ElectroMetallurgical Co. Pty Ltd(TEMCO)
This company operates anelectro-metallurgical smelter makingferro-alloys at Bell Bay, the onlymanganese ferro-alloy plant inAustralia. Four electric-arc furnacesand a sinter plant produce high-carbonferromanganese, silicomanganese and
sinter. Nominal capacity based on the2007 product mix is 128 000 tonnes ofhigh-carbon ferromanganese, 126 000tonnes of silicomanganese and 336 000tonnes of manganese sinter per annum.
Impact Fertilisers Pty Ltd
This company employs 151 full-timeemployees and 20 part-timecontractors. Production of fertilisers at the Risdon plant for the 2007/2008
financial year totalled 216 000 tonnes,of which 120 000 tonnes wasphosphate rock.
A review is currently beingundertaken on grinding and processchange to an ‘In Line’ productionsystem. Rehabilitation initiativesincluded removal and recycling of pond sludge, improving drainage, andimproving storage and covering of rock heaps.
ANNUAL REPORT
Rehabilitation of Mining Lands Trust Fund
Mineral Resources Tasmaniaadministers the Rehabilitation ofAbandoned Mining Lands Trust Fundwhich is used to carry outrehabilitation of abandoned mininglands in Tasmania. The Trust wasestablished following the proclamationof the Mineral Resources DevelopmentAct 1995. The State agreed with themining and quarrying industries to usepart of mining royalty raised by the Act for the rehabilitation of Crown landaffected by historic mining disturbance.
Approximately $170,050 was spentfrom the fund during the past year,with the major program being mineshaft capping at Pipers River innortheast Tasmania.
Shaft safety
! A program to address safety risksposed by abandoned mine shafts ona section of the Den Goldfield atPipers River was undertaken duringthe year. Fifteen open mine shaftswere capped with concrete panels.Expenditure totalled $59,600.
! A three-year program of shaftcapping and fencing was completedat Lefroy. Expenditure totalled$5,000.
! Grating was constructed to cover an historic water race shaft at Waratah. Expenditure totalled $10,000.
! Grating was fitted to an adit adjacent to Warrentinna Road nearBranxholm. A locked boom gate was installed on the access track to thenearby Golden Mara mine workings
to restrict public access.Expenditure totalled $21,300.
Other minor safety workencompassed:
! A safety barrier was constructedbetween a vehicle track and highquarry face within the CameronReserve at Gladstone.
! A collapsed mine shaft was backfilled at Royal George.
Expenditure totalled $1,800.
Mine site rehabilitation
! Revegetation work was carried outon area of approximately threehectares at Storys Creek. This areacomprised a former precipitate damsite and obsolete haul road. Theprogram incorporated test plots forvarying revegetation treatmentmethods and rare species trial plotsset up by the Royal TasmanianBotanical Gardens. Expendituretotalled $25,500.
! Improvements were made to anexisting anoxic limestone drainsystem designed to improve waterquality at Storys Creek. Expenditure totalled $3,200.
! Revegetation work was carried outon approximately three hectares atthe Argonaut mine at St Helens.Expenditure totalled $20,550.
! Site investigations continued onhistoric tailings at Royal George,including land survey and drainagedesign. Expenditure totalled$10,200.
! Weed control and repairs to anerosion gully were carried out at the Endurance mine at Gladstone.Expenditure totalled $2,000.
! Stage one of a site clean-up wasundertaken at an abandoned goldmine camp within the Den Reservenear Pipers River. Expendituretotalled $2,700.
! Groundwater monitoring wells were installed into a tailings dam at theCleveland mine at Luina.Expenditure totalled $2,900.
! A damaged diversion drain wasrepaired at the Oonah mine atZeehan. Expenditure totalled$1,200.
! Water quality monitoring wasundertaken at Websters Creek near Waratah. Expenditure totalled $500.
Quarry rehabilitation
Revegetation maintenance,encompassing weed control andrevegetation monitoring, continued atPunchs Terror quarry at Dunorlan andThe Badgers quarries near Sheffield.Expenditure totalled $1,600.
Queensberry Track gorsecontrol
An on-going program of weedcontrol at the abandoned Queensberry mine, managed by the Parks andWildlife Service, again received funding. Expenditure totalled $2,000.