AUSTRALIA IS POISED FOR A NEW ERA OF MINING GROWTH
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AUSTRALIA IS POISED FOR A NEW ERA OF MINING GROWTH w w w. a u s t r a l i a n m i n i n g . c o m . a u
In the wake of the mining downturn, the industry However, battery minerals, such as lithium, have
has recovered to re-affirm its place as a major driver started to show their value in the future of the
of the Australian economy. industry.
The coming years will reinforce this position as Geographically, Western Australia leads the way with
dozens of projects or expansions develop into projects at the committed and feasibility stage.
Australia’s next generation of mines. Queensland is also set for expansion with upcoming
In the Australian Government’s latest report on developments in a diverse range of commodities,
resources, more than 25 mining projects had reached including coal, gold and copper.
the committed status, with dozens more in the In this white paper, Australian Mining summarises the
feasibility stage. major projects that are set to make an impact on the
Australia’s leading commodity exports – iron ore, mining landscape in the coming years, with primary
coal and gold – continue to provide the next phase focus on those that the Australian Government rates
of development. with the committed status (as fourth quarter 2018).
Western Australia two main components, a ventilation upgrade and paste
Gold Road Resources / Gold Fields, Gruyere, Western aggregate fill. St Barbara has forecast Gwalia to produce
Australia, gold 290,000 ounces of gold a year by the 2022 financial year.
The Gruyere joint venture is set to pour first gold at the
Gruyere project in Western Australia during the June Blackham Resources, Wiluna-Matilda expansion,
2019 quarter. Gold Road reported that first ore had been Western Australia, gold
mined at the $621 million project in January 2019. The Blackham hopes to expand its Matilda-Wiluna gold
Gruyere site, Western Australia’s newest greenfields operation into a mine that produces 200,000 ounces a
gold discovery to be developed, is currently expected year with this project. The company is, however, already
to produce 300,000 ounces a year over a 12-year mine producing at the site at a rate of almost 20,000 ounces
life. Downer EDI has been appointed as Gruyere’s mining each quarter. In August 2017, Blackham released an
contractor. expansion preliminary feasibility study that confirmed
a capital efficient growth project that would cost $114
million. Blackham restarted open pit mining for the first
time in 10 years at Wiluna in October 2017.
Kalgoorlie Consolidated Gold Mines, Superpit expansion
Western Australia, gold
KCGM, the joint venture between Newmont Mining and
Barrick Gold, is expanding the Super Pit gold mine in
Kalgoorlie-Boulder for the first time in a decade. The JV
started mining the Morrison layback in November 2018
with the first production blast in the area. The layback,
the first at the mine since Golden Pike in 2009, is at the
southern end of the Fimiston open pit. It has been called
the Morrison starter pit.
Fortescue Metals Group, Eliwana, Western Australia,
iron ore
Fortescue approved the development of the Eliwana
mine and rail project in the Pilbara during May 2018.
The $1.7 billion project involves 143 kilometres of rail,
St Barbara, Gwalia extension, Western Australia, gold a new 30 million tonnes per annum dry ore processing
St Barbara approved the project to extend the historic facility and infrastructure. Fortescue expects production
Gwalia gold mine to at least 2000 metres below surface to begin at Eliwana in December 2020. The project
in March 2017. The $100 million project, which remained underpins the company’s introduction of a 60 per cent
on track after the December 2018 quarter, is expected iron ore product in late 2018. Eliwana is located west of
to take up to three years to complete. It consists of Fortescue’s Solomon Hub operations.
Mount Gibson Iron, Koolan Island restart, Western
Australia, iron ore
Mount Gibson expects to complete the Koolan Island
restart project off the Kimberley coast in the March 2019
quarter. Operations at Koolan Island were suspended in
November 2014 following a seawall failure that resulted in
the flooding of the Main Pit. Mount Gibson approved the
restart project in April 2017 after two years of evaluation
work. The high-grade Main Pit has ore reserves of 21
million tonnes at 65.5 per cent iron.
Rio Tinto, Robe Valley / West Angeles expansion, Western
Australia, iron ore
Rio Tinto and its joint venture partners approved a $1.55
billion investment to sustain production capacity at two
projects that form part of Robe River last October. The
investment includes developing the Mesa B, C and H
deposits at Robe Valley, and the Deposits C and D at West
Angeles. Rio Tinto will sustain production of the Pilbara Talison Lithium, Greenbushes expansion, Western
Blend and Robe Valley lump and fine iron ore products Australia, lithium
with the project. First ore is expected in 2021. Talison, a JV between Tianqi Lithium and Albemarle Corp,
has committed to multiple expansions at Greenbushes
BHP, South Flank expansion, Western Australia, iron ore in recent years. The latest expansion, announced in the
BHP approved the $US3.4 billion investment in the South first half of 2018, will double the production capacity at
Flank iron ore project in the Pilbara in June 2018. The Greenbushes to 2.3 million tonnes of lithium concentrate
project is being developed to fully replace production a year from 2021. It will add output feed hydroxide plants
from the 80 million tonnes per annum Yandi mine as being built in the state by the JV partners. Greenbushes is
the site heads towards the end of its economic life. BHP already the world’s largest lithium mine.
will expand the existing infrastructure at Mining Area C,
including construction of an 80 million tonne per annum Tianqi Lithium Australia, Kwinana lithium plant, Western
crushing and screening plant, an overland conveyor Australia, lithium
system, stockyard and train loading facilities, and more. Tianqi is spending more than $700 million at Kwinana
First ore is expected in 2021. near Perth on a two-stage lithium hydroxide plant. The
first stage of the project had entered a commission phase
Iluka Resources, Cataby, Western Australia, mineral by the start of 2019. The second stage is progressing
sands throughout 2019 before an expected finish before the end
Iluka approved development of the Cataby minerals of the year. The Kwinana plant is expected to become the
sands project 150 kilometres north of Perth in December world’s largest producer of battery-grade lithium hydroxide
2017 after securing off-take agreements for 85 per cent at 48,000 tonnes a year.
of production from the site. Cataby is a large chloride
ilmentite deposit, which will also underpin the continued Kidman Resources, Mount Holland mine, Western
production of 200,000 tonne per year of synthetic rutile Australia, lithium
from the company’s Synthetic Rutile kiln 2 site at Capel in Kidman, with joint venture partner Sociedad Quimica
the state’s South West region. The project is costing up to y Minera de Chile S.A. (SQM), is developing the $849
$275 million to develop. million lithium project in the Goldfields region of WA. In
a pre-feasibility study released December 2018, Kidman
Image Resources, Boonanarring, Western Australia, forecast Mt Holland to be a long-life, low-cost operation
mineral sands with projected annual production of 45,254 tonnes of LiOH
Image Resources launched production of heavy mineral and a 47-year mine life. Kidman also has plans to develop
concentrate at the Boonanarring site in the North Perth a refinery at Kwinana near Perth to produce battery-grade
Basin in November 2018. The company, which started refined lithium.
construction on the $235 million project in March 2018,
reported the first bulk shipment of concentrate from the Mineral Resources, Wodgina processing plant, Western
Bunbury Port in January. Image will ramp up production to Australia, lithium
a steady state of around 500 tonnes per hour at the site MinRes plans to fund, design, build and operate a
over the first half of 2019. lithium hydroxide plant at Wodgina in the Pilbara withAlbemarle after the companies formed a joint venture in a stage four pit cut back and plant modifications.
November 2018. The JV partners have proposed to develop Evolution will bring forward production from Mt
the plant over two stages, with the first stage expected Carlton’s high-grade zone with the projects. It expects
to produce at least 50,000 tonnes per annum of lithium to deliver first ore from the underground operation
hydroxide. The second stage is expected to increase during the 2021 financial year.
production from the plant to 100,000 tonnes per annum
of lithium hydroxide. South Australia
BHP, Olympic Dam expansion, South Australia,
Queensland copper
Rio Tinto, Amrun expansion, Queensland, bauxite BHP has committed to a series of expansion projects at
Rio Tinto achieved first shipment of bauxite from Olympic Dam in recent years, including a $350 million
Amrun in Far North Queensland six weeks ahead of investment to upgrade the surface operations. The
schedule in December 2018. The $2.6 billion project project, the largest planned shutdown undertaken at
is replacing production from Rio Tinto’s now-depleted the asset, ran for over 100 days from August 2017. BHP
East Weipa mine, expanding the company’s presence also used the opportunity to carry out major upgrade
on the Western Cape. Rio Tinto will ramp up operations works on Olympic Dam’s refinery, concentrator, other
to a full production rate of 22.8 million tonnes a year key infrastructure and site technology.
during 2019. The Amrun project was originally approved
by Rio Tinto in November 2015. OZ Minerals, Carrapateena, South Australia, copper-
gold
QCoal Group, Byerwen, Queensland, coal OZ Minerals’ next major copper project, Carrapateena,
QCoal is developing the Byerwen open cut project is expected to reach production in the December
in the Bowen Basin to eventually produce 10 million quarter of 2019. The Adelaide-based company
tonnes of metallurgical coal a year. The company started approved development of the $916 million project in
construction and mining operations at the site in 2017 after August 2017 and has created over 1000 jobs at the site.
securing the mining leases it needed in May of that year. It expects the operation to annually produce 65,000
QCoal has appointed Macmahon Holdings as the Byerwen tonnes of copper and 67,000 ounces of gold over a 20-
mining contractor, while Sedgman is developing the year mine life once it is developed. Downer EDI is the
minerals processing operations. underground contractor at Carrapateena.
Copper Mountain Mining, Cloncurry, Queensland, copper Quantum Graphite, Uley, South Australia, graphite
Copper Mountain Mining Corp (CMMC) added the Formerly Valence Industries, Quantum Graphite is
Cloncurry project to its portfolio after acquiring Altona resurrecting the Uley mine, where operations have
Mining for $93 million in 2018. The Canadian company has been suspended since December 2015. The project,
since also added a listing on the ASX as it edges towards 23 kilometres south-west of Port Lincoln, involves
developing the site. CMMC released a feasibility study the recommissioning of existing graphite mining and
for the Cloncurry project in October 2018 that estimated processing operations. The company will use existing
a $350 million capital cost to develop the site. It has not, plant, utilities, community engagement and associated
however, made a decision to start construction. infrastructure. South Australian approvals for the
restart were granted in mid 2017.
Citigold Corp, Charter Towers expansion, Queensland,
gold New South Wales
Citigold plans to expand its Charter Towers project into Diversified Minerals, Dargues Reef (Majors Creek),
an operation that produces 218,000 ounces a year. The New South Wales, gold
underground operations at the Central and Imperial Diversified Minerals expected to start construction of
mining areas remained on care and maintenance during the Dargues gold project during February 2019. The
the December 2018 quarter, with no gold production. company was set to reach this milestone after awarding
The Central mine will be opened first by Citigold, which the engineering, procurement and construction
continues to refine its designs and strategies for the site. (EPC) contract for the Dargues to DRA Global.
Dargues has been designed to produce an average of
Evolution Mining, Mt Carlton, Queensland, gold 50,000 ounces of gold a year in the first six years of
Evolution Mining approved a $60 million investment in production. DRA is developing a 355,000 tonne per
three projects at the Mt Carlton mine in October 2018. annum gold processing facility and backfill plant. First
The projects include an underground development, ore is expected in early 2020.You can also read
