Mining giant Rio Tinto sources said that Rio has unearthed a “remarkable” 12.76 carat pink diamond in Australia, the largest of the rare and most precious stones ever found in the resources-rich nation.

Named the Argyle Pink Jubilee, the huge rough stone was found at Rio’s pink diamond holdings in the Kimberley region of western Australia and would take almost 2 weeks to cut and polish, it was said.

“This rare diamond find is generating incredible excitement. A diamond of this calibre is unprecedented — it has taken 26 years of Argyle production to unearth this precious gem and we may never see one like this again,” said Josephine Johnson from Rio’s Argyle Pink Diamonds division.

“The individual who gets to wear this remarkable pink diamond will be an  incredibly lucky person.”

The light pink Argyle Jubilee has similar colour tones to the 24-carat Williamson Pink given to Britain’s Queen Elizabeth II as a wedding gift which was later re-set into a Cartier brooch for her coronation.

The Williamson was discovered in Tanzania in 1947 and  ranks among the finest pink diamonds in existence.

Rio produces more than 90 percent of the world’s pink diamonds from the Argyle mine, and said, typically large stones like the Jubilee typically went to museums, were gifted to royalty or end up at prestigious auction houses like Christie’s for sale to the highest bidder.

Christie’s had only auctioned 18 polished pink diamonds larger than 10 carats in its 244-year history, Rio said.

When the Jubilee pink diamond has been cut and polished it will be graded by international experts and showcased globally before being sold by invitation-only tender later this year.

This 12.76 carat sparkling gem which was discovered at the Rio Tinto Argyle mine is among the largest and most valuable pink diamonds in the world.

The rarest of diamonds, pink diamonds have been  known to fetch about $1 million a carat on the market.

Sourced & published by Henry Sapiecha

www.www-gems.com

Black Coral & 1 carat pink diamond pendant for sale

Pink heart diamond 4.54 carats for sale

Pink diamond RBC 1.84 carats in ring for sale

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CONGA GOLD PROJECT IN PERU IN STALL MODE BUT HOPEFUL TO PROCEED

The Wall Street Journal reports Peru on Friday announced a programme of social and infrastructure investments in its poor Cajamarca region aimed at winning over local protesters who have brought to halt Newmont Mining’s $4.8 billion Conga project over environmental concerns.

Protestors, led by Cajamarca’s Maoist governor Gregorio Santos, say Conga will destroy the environment by transforming four high Andean lakes into reservoirs for mining operations.

In December the government was forced to declare a state of emergency after boulders were used to block exits from the regional capital of more than 200,000 inhabitants, schools, hospitals and business were closed and dozens injured in clashes with police.

The Wall Street Journal reports Peru’s new Prime Minister, Oscar Valdés, who was elevated to the position after a cabinet shake-up prompted by the Conga crisis said late Thursday that he thought work on the project which was stopped in November could restart by March:

On Friday, René Cornejo Diaz, the housing minister, was sent to Cajamarca to tout the federal government’s program to invest 4.3 billion soles, about $1.6 billion, in infrastructure and expanded antipoverty programs in Cajamarca.

But Cajamarca leaders, including the governor, Gregorio Santos, didn’t seem likely to be swayed by government largess. “The position of the regional government is clear, Conga is not going ahead,” Máximo Léon, a top adviser to Mr. Santos, said in a telephone interview.

Conga has gold deposits worth about $15 billion at current prices and would be the biggest investment ever in Peru mining.

Conga has turned into a political nightmare for President Ollanta Humala who took office last year and who has on many occasions publicly backed the project. The bitter dispute is seen as a test case for scores of conflicts triggered by mining investments in the country.

At least 200 communities nationwide in Peru have organized to stop mining or oil projects, usually over environmental concerns or to demand direct economic benefits in rural towns.

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Japan’s largest energy explorer has today committed to build the $34 billion Ichthys liquefied natural gas project in Australia, which would become one of the world’s biggest LNG facilities with an estimated 40-year life of processing gas from WA’s Browse Basin.

Inpex chair Naoki Kuroda announced the much anticipated final investment decision in Darwin, the site elected to build the project’s onshore gas processing facility after early plans to build the hub north of Broome.

The investment would be the single-largest in Australia from the Asian nation and create an initial 3000 jobs in Darwin with 1000 more off the WA coast. Once the project is fully operational it would shrink to 700 permanent staff.

The project would provide long term stable supply of energy to Japan after the Dai-Ichi nuclear station in Fukushima was crippled from an earthquake and tsunami in March.

Ichthys is among $200 billion worth of LNG developments planned, or under construction, in Australia as the country moves toward the top spot in the global rankings of LNG suppliers.

Australia, with projects led by Chevron, Royal Dutch Shell, Woodside, will “rival” Qatar as the world’s biggest exporter by 2016, Energy Minister Martin Ferguson has said.

“Ichthys will contribute significantly to the growth of the Australian economy while strengthening friendly ties between Japan and Australia,” Mr Kurodo said.

He said construction on the project was expected to begin at the Blaydin Point site in Darwin within the next month.

Mr Karudo said tenders for the project would have to demonstrate how they would maximise use of Australian products and services to be successful.

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Carbon is the fourth-most-abundant element in the universe and comes in a wide variety of forms, called allotropes, including graphite, graphene, and the hardest natural material known to man, diamonds. Now scientists have discovered a new form of carbon that is capable of withstanding extreme pressure stresses previously only observed in diamond. Unlike crystalline forms of carbon such as diamonds, whose hardness is highly dependent upon the direction in which the crystal is formed, the new form of carbon is amorphous meaning it could be equally strong in all directions.

A team including scientists from Stanford University and the Carnegie Institution for Science started with a form of carbon called glassy carbon. Glassy carbon was first synthesized in the 1950s and was found to combine glassy and ceramic properties with those of graphite, including high temperature resistance, hardness, low density, low electrical resistance, low friction and low thermal resistance. To create the new carbon allotrope, the team compressed glassy carbon to above 400,000 times normal atmospheric pressure.

The resultant new form of carbon was capable of withstanding the types of pressure stress that no other substance other than diamond had been able to withstand. It was able to withstand 1.3 million times normal atmospheric pressure in one direction while confined under a pressure of 600,000 times atmospheric levels in another direction.

Because, unlike diamonds, the structure of the new allotrope is not organized in repeating atomic units, it may hold potential advantages over diamonds. Whereas a diamond’s hardness is highly dependent on the orientation of its crystalline structure, the new material is amorphous, meaning its structure lacks the long-range order of crystals offering the prospect that the new material could be isotropic – that is, having equally strong hardness in all directions. If this turns out to be the case, it could be better suited to certain applications than diamonds.

“These findings open up possibilities for potential applications, including super hard anvils for high-pressure research and could lead to new classes of ultradense and strong materials,” said Russell Hemley, director of Carnegie‘s Geophysical Laboratory.

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to revive South Korean

tungsten mine

Woulfe Mining Corp. (TSX-V:WOF) is going ahead with an aggressive plan to re-open a dormant tungsten mine in South Korea by 2012. The Sandong tungsten-molybdenum mine is one of the largest tungsten mines in the world, having operated for over 40 years. Woulfe Mining recently completed its drilling program and is looking to publish a feasibility study by the end of the year. A scoping study done in 2010 by Wardrop Engineering showed an projected resource of 103.6 millon tonnes. The mine would produce about 4,000 tonnes of tungsten worth a cool $180 million per year. MINING.com speaks to Woulfe Mining CEO Brian Wesson about the project

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KELOWNA, August 17, 2011 – Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the “Company”), is pleased to announce that it is continuing to make strong advances in the completion of the recommended drilling programme and site preparations for the Company’s planned transition to recommended bulk sampling at its Krone-Endora at Venetia project (the “Project”).  In addition to the drilling efforts, which are now in their final stages, approximately +/- 20 employees, consultants and contractors, including heavy equipment, are preparing for the Company’s starting of the recommended bulk sampling program.  Preparations include the establishment and upgrade of access roads throughout the Project, preparations for the installation of an initial water pipeline, preparation of the area selected for the anticipated delivery of the bulk sampling plant, preparation of areas which have been selected for bulk sampling, establishment of operational offices and infrastructure on-site, procurement of equipment necessary for bulk sampling, and the procurement of the bulk sampling plant for delivery to the Project.  Further details regarding Company efforts to support the transition to bulk sampling will be released by the Company in the next few  weeks.

Drilling Programme Extended:

The Company initially planned to drill around 390 targets on the K1, K3, Confluence, and areas of interest immediately adjacent to these areas of the Project as part of the recommended drilling programme.  Due to the encouraging results of the ongoing drilling efforts in identifying additional gravel bearing areas, and the desire to further extend drilling into new areas, the Company expanded the total number of drilling targets and has now successfully completed the drilling of 469 targets.  In addition to the drilling completed to date, the Company plans to further extend drilling to include an additional +/- 50 targets in new areas to the north east of the K3 and Confluence areas.  All targets drilled to date have been in areas outside of the current fence-line of Venetia.  In conjunction with the drilling of these extended targets outside the current fence line of Venetia, the Company also plans to complete the drilling of various targets inside the fence-line of Venetia in the next few weeks.  The drilling of targets inside the fence-line of Venetia is aimed at aiding in the identification of potential extensions of the known deposits from the K1 area through the areas to the East of K1 where drilling has now been completed up to the Venetia fence-line.  The Company is targeting the completion for all remaining drilling prior to the end of the third calendar quarter.

Data gained from the combined drilling efforts is designed to aid the Company, and consultant geologists, in determining the depths of the underlying bedrock throughout the various initial areas of the Project being drilled, to provide additional information on both the known lower-grade upper gravels and higher-grade basal deposits in the areas of the Project which were previously identified by De Beers, and to identify potential extensions and the directions of any additional deposits into new areas from the proposed source of the deposits, the adjacent Venetia kimberlites.  Data is also being used to identify the target areas for the Company’s recommended bulk sampling programme.

The combined results of the recommended drilling and bulk sampling programmes are designed to support the filing of a new updated NI 43-101 Technical Report (the “NI 43-101 Report”) for the Project in the coming months.  These programmes will also be used to aid in the recommended advancement of the Project to trial mining exercises in the near-term, and to assist the Company in assessing a production strategy for the Project over the long-term.  The current NI 43-101 Technical Report as filed by the Company on July 30, 2009 was based solely on the areas of the Project on which De Beers previously performed initial work, with the average diamond dollar per carat price estimate in that report dating from 2005.  In addition to further establishing grades and other relevant information in areas being targeted for bulk sampling, the Company anticipates that the rough diamonds recovered during bulk sampling will allow the Company and independent geologists to establish the current rough diamond dollar per carat average for the Project.

About Krone-Endora at Venetia:

On February 28, 2011, Diamcor successfully completed the acquisition of the Krone-Endora at Venetia Project from De Beers. The Project consists of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ flagship Venetia Diamond Mine in South Africa.  De Beers previously completed various exploration efforts on initial areas of interest comprised of approximately 310 hectares, a summary of which has been reported in an initial Independent NI 43-101 Technical Report filed by the Company on July 30, 2009.  The deposits which occur on the properties of Krone and Endora have been identified as a rare, higher-grade lower “Eluvial” basal deposit which is covered by a lower-grade upper “Alluvial” deposit.  The deposits are proposed to be the result of the direct-shift (in respect of the “Eluvial” deposit) and erosion (in respect of the “Alluvial” deposit) of an estimated combined 1,000m (1 km) of material from the higher grounds of the adjacent Venetia kimberlite areas.  Based solely on the work completed to date, the current NI 43-101 Technical Report filed provided an inferred resource estimate of 54,258,600 tonnes of diamond-bearing gravels and 1.3 million carats of diamonds for the initial areas of interest alone.  The deposits on Krone-Endora occur in two layers with an average total depth of only 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed, and the potential for near-term diamond production from a known high-quality source.  Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.

About Diamcor Mining Inc:

Diamcor Mining Inc. is a fully reporting publically traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI, and on the OTC QX International under the symbol DMIFF.  The Company has a well-established operational and production history in South Africa, and extensive experience supplying rough diamonds to the world market.  Rather than exposing itself to the high risks and costs associated with exploration, the Company’s focus is on the identification, acquisition, and operation of quality near-term production based diamond projects such as the Krone-Endora at Venetia Project.  For additional information on Diamcor, please visit our website at www.diamcormining.com.

Strategic Tiffany & Co. Alliance:

As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with world famous New York based Tiffany & Co. to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project.  To expedite the production and supply of rough diamonds from Krone-Endora at Venetia, Tiffany & Co. has also provided the Company with additional financing for the Project.  Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF.  Originally founded in 1837, the Tiffany’s name is now globally recognised as one of the premier luxury jewellery and specialty retailers in the world.  Through Tiffany & Co. and various other subsidiaries, the company is engaged in product design, manufacturing, and retailing activities on a global basis.  As of October 31, 2010 Tiffany & Co. operates 225 retail stores and boutiques in the Americas, Japan, Asia-Pacific, and Europe and engages in direct selling through internet, catalog and business gift operations.  For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com

Phone:             (250) 864-3326
Website:           www.diamcormining.com

Received & published by Henry Sapiecha

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March 25, 2011

BHP Billiton will spend nearly $US10 billion ($9.89 billion) to expand iron ore operations and energy and metallurgical coal projects in Western Australia.

The world’s biggest resource company will spend $US6.6 billion in an iron ore project expansion in Western Australia, $US2.5 billion to expand three metallurgical coal projects in Queensland and $400 million on an energy coal project in NSW.

BHP shares initially rose 0.5 per cent on the news, but slipped in morning trade and were recently down 0.5 per cent at $44.51. Rival Rio Tinto rose 0.6 per cent.

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The company said it and its partners would spend $US7.4 billion to develop the Jimblebar mine and rail links, to further develop Port Hedland and to build ore blending facilities, taking the annual iron ore capacity to 220 million tonnes.

BHP Billiton’s president of iron ore, Ian Ashby, said the intention was to develop the port capacity so that the company could fill its 240 million tonne per annum allocation in Port Hedland’s inner harbour.

‘‘We have intentionally overbuilt the ore handling facilities at Jimblebar and expect to incrementally grow mine production to ensure that our port and rail systems are operated at full capacity during this debottlenecking program,’’ he said in a statement.

BHP Billiton said first production from the Jimblebar mine was expected in early calendar 2014.

A total of $US3.4 billion will be spent on the Jimblebar mine, including buying rolling stock, with initial capacity of 35 million tonnes per annum, with embedded options to expand to 55 mtpa.

A further $US2.3 billion, including BHP Billiton’s share of $US1.9 billion, will be spent on Port Hedland, adding two berths and shiploaders and other works.BHP Billiton and its partners will spend $US1.7 billion on the port blending facilities and rail yards.

The Melbourne-based company also approved spending $US2.5 billion ($A2.47 billion) on three coking coal projects in the Bowen Basin in central Queensland. BHP’s share is half of the total $US5 billion to be spent on the expansion.

BHP Billiton metallurgical coal president Hubie van Dalsen said the company had a deep pipeline of expansion projects to develop its large reserves of metallurgical coal.

‘‘Our strategy is to rapidly progress development of these projects to capture the increasing demand we see for hard coking coal,’’ he said.

BHP Billiton said the projects would add 4.9 million tonnes of annual mine capacity to the Daunia operation and a new mining area at Broadmeadow.

In a third statement, BHP Billiton said it would spend $US400 million to expand Hunter Valley Energy Coal in NSW, to increase coal production by four million tonnes per annum to about 24 million tonnes per annum.

‘‘The emergence of demand for coal in the key growth markets allows us to get product to market quickly, ahead of further coal preparation plant expansions,’’ BHP Billiton Energy Coal President Jimmy Wilson said.

BHP Billiton is cashed up after reporting a new Australian record first half net profit in February of $US10.524 billion ($A10.41 billion) for the six months to December 31.

BHP Billiton stocks rose 51 cents to close at $44.71 on the ASX yesterday.

Sourced & published by Henry Sapiecha

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Cairn Hill – Pit1, first blast, shot being loaded, with drilled ground and partial mining fleet in background

Miner, IMX Resources Limited (ASX:IXR) is pleased to announce that the first blast of ore has occurred at its Cairn Hill Phase 1 magnetite – copper – gold mine in South Australia and the mine is now in production.

IMX has been pre-stripping the first pit for four months for construction material for the ROM  and laydown pads. To date approximately 380,000 bcm of material has been moved. The top of the orebody adjacent to the trial mine in Pit 1 has been exposed, drilled and blasted. This first blast comprises approximately 40,000 tonnes of ore. Continue reading ?

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This section is based on information contributed by Geoscience Australia and the Australian Bureau of Agricultural and Resource Economics (ABARE) (September 2006).

Note: Values are given in Australian currency unless otherwise stated.

MINERALS

Maps 16.23, 16.24 and 16.25 show selected mines and deposits – map 16.23 covers gold and diamonds; map 16.24 covers bauxite, coal, iron ore, manganese ore and uranium; map 16.25 covers base metals and mineral sands.

16.24 SELECTED MINES AND DEPOSITS OF BAUXITE, COAL, IRON ORE, MANGANESE AND URANIUM – 2005

Bauxite, alumina and aluminium

Bauxite is a heterogeneous naturally occurring material from which alumina and aluminium are produced. The principal minerals in bauxite are gibbsite, boehmite and diaspore (which has the same composition as boehmite but is denser and harder). Bauxite is the ore from which alumina (aluminium oxide) is extracted while aluminium is produced from smelting alumina.

Australia’s aluminium industry is a large integrated industry of mining, refining, smelting and semi-fabrication, which is of major economic importance nationally and globally. Its EDR of bauxite (5.8 gigatonnes (Gt)) provide a world class resource base for the industry, which comprises five bauxite mines, seven alumina refineries, six primary aluminium smelters, twelve extrusion and two rolled product (sheet, plate and foil) mills. In 2005 Australia was the largest producer of bauxite and alumina. The Australian aluminium industry directly employs over 12,000 people.

Production in 2005 totalled 60.0 Mt of bauxite, 17.7 Mt of alumina and 1.9 Mt of aluminium (ingot metal). Compared with 2004 these represented an increase of 6.0% for bauxite, 7.3% for alumina and no change for aluminium.

In 2005, the Queensland Government called for expressions of interest in the development of the Aurukun Bauxite Project. The objectives for the development of the Aurukun resource include its development as a source of bauxite for a new alumina refinery in Queensland. The $US1.3b expansion plans for the Gove alumina refinery in the Northern Territory are progressing. The project is scheduled to be completed by 2007 and will lift the refinery’s capacity from 2.1 Mt to around 3.8 Mt per year.

Coal

Black coal is a solid rock formed from brown coal after greater heat and pressure have been applied. Black coals are distinguished by rank and may be sub-bituminous, bituminous or anthracite. Black coal is primarily used for electricity generation and the production of coke, which is integral to the production of iron and steel. Black coal is also used as a source of heat in the manufacture of cement and food processing. Brown coal is a less matured form of coal. It has a high ‘in situ’ moisture content (up to 60%) with a correspondingly low heating value. It is highly susceptible to spontaneous combustion. Brown coal is used widely for power generation, is made into briquettes, and can be converted to liquid or gaseous fuels.

Although coal mining occurred in all states in 2005, New South Wales and Queensland produced over 96% of all black coal (anthracite, bituminous and sub-bituminous coals) and Victoria produced all the brown coal (lignite). Australia’s EDR of recoverable black coal is 39.2 Gt, which is about 5% of total world EDR making Australia’s holdings the sixth largest in the world. EDR of recoverable brown coal is 37.4 Gt, which gives Australia the largest holding in the world and accounts for 24% of world EDR. All EDR is located in Victoria and about 89% is located in the La Trobe Valley.

Australia’s coal production and exports have risen strongly over the last two decades. Production of black coal increased in 2005. Output of saleable black coal at 303.0 Mt was 1.7% higher than in 2004 and made Australia the world’s fourth largest producer. Brown coal production reached 67.2 Mt in 2004-05. Australia was the world’s fifth largest producer of brown coal with about 8% of production.

Copper

Copper occurs in various forms. It can occur naturally in its pure state (native copper) but is principally mined as chalcopyrite. Copper is one of the most important and widely used metals of modern society due to its properties of:

• high electrical and heat conductivity
• ductile and malleable
• resistant to corrosion
• ability to form alloys with other metals.

These properties enable copper to be used in a wide range of applications. The largest use of copper is in the electrical industry where copper wire and cable account for about half of the world’s copper production. Other major markets are the motor vehicle and construction sectors. Copper is also an integral part of the expanding information technology sector and is used in the manufacture of computers, mobile phones, fax machines and televisions.

Major Australian copper mining and smelting operations are at Olympic Dam (South Australia) and Mt Isa (Queensland), with smaller projects in New South Wales, Queensland, Western Australia and Tasmania. Australia’s EDR of copper is 41.4 Mt giving it the world’s second largest holding of copper EDR with 8% of the total.

Mine production of copper in 2005 was 921 kt of contained copper, 7% higher than in 2004 (860 kt). Queensland dominates Australian production with 399 kt (largely from Mt Isa) followed by South Australia with 213 kt (all from Olympic Dam). The remaining production occurred in New South Wales (190 kt), Western Australia (90 kt) and Tasmania (30 kt). As a producer, Australia ranks fifth, with 6% of world output, after Chile (36%), the United States of America (8%) and Indonesia and Peru (both 7%).

Diamond

Diamond is composed of carbon, and is the hardest known natural substance, but a sharp blow can shatter it. Diamonds occur naturally but are extremely rare compared with other minerals. Diamonds are thought to form deep in the earth at high temperatures and pressures and are carried to the surface or near surface by volcanic rocks in narrow cylinder-like bodies called ‘pipes’. A large proportion of industrial diamonds are manufactured, and it is also possible to produce synthetic diamonds of gem quality. Uses for diamond include jewellery, computer chip manufacture, drill bit facing, and stone cutting and polishing.

Australia produced 30.7 million carats (Mc) of diamond in 2005, making it the world’s second largest producer of diamond by weight after Russia, with Botswana and Congo (Kinshasa) ranked third and fourth respectively. It is the second largest producer of industrial-grade diamond and the third largest producer of gem/near gem diamond after Botswana and Russia.

Australia’s EDR of gem/near gem diamonds is 124.2 Mc and industrial diamonds 129.2 Mc. These are both more than double the EDRs for 2004 as a result of the decision to proceed with underground mining at Argyle and a related upgrade of around half of the mineral resource to ore reserves based on the results of a comprehensive feasibility study. Australia’s EDR of industrial diamond is ranked third in the world, with 21% of world EDR.

The majority of Australian production was from the Argyle mine in the Kimberley region of Western Australia which produced 30.5 Mc of mostly industrial and near gem diamonds in 2005. Argyle production was 48% higher than in 2004 despite mining constraints within the deepening open pit.

Gold

Gold has a range of uses but the two principal applications are as an investment instrument and in the manufacture of jewellery. Secondary uses, in terms of the amount of gold consumed, are in electronic and dental applications.

Gold resources occur and are mined in all Australian states and the Northern Territory. Australia’s EDR of gold is 5,225 tonnes, the second largest in the world after South Africa.

Australian gold production in 2005 (reported by ABARE) was 263 tonnes. This level of production makes Australia the second largest producer in the world after South Africa. The Super Pit at Kalgoorlie in Western Australia was the largest producer with an output of nearly 26 tonnes (just over 0.8 million ounces).

Iron ore

Iron ore is the source of primary iron for the world’s steel industries. Over 97% of iron ore production occurs in the Hamersley Basin (Western Australia). Small production also comes from elsewhere in Western Australia, Tasmania, South Australia and New South Wales. Australia’s EDR of iron ore is 16.4 Gt which is about 10% of world EDR. Western Australia has almost all of Australia’s EDR with about 92% occurring in the Pilbara district. Australia has the fifth largest iron ore holding in the world.

Australia’s production of iron ore in 2005 (reported by ABARE) was 261.4 Mt, which was 17% of world output, making Australia the world’s third largest producer after China and Brazil.

Manganese ore

About 90% of the world’s production of manganese is used in the desulphurisation and strengthening of steel. Other uses include the manufacture of dry batteries, as a colorant, and as an ingredient in plant fertilisers and animal feed. Manganese ore was mined in the Northern Territory and Western Australia in 2005. Production reached 3.9 Mt, 14% of world output, making Australia the third largest producer in the world. Australian production is from three mines – Woodie Woodie (Western Australia) and Groote Eylandt and Bootu Creek (both in the Northern Territory). Australia’s EDR of manganese ore, at 143 Mt, is 12% of world EDR, fourth largest in the world.

Mineral sands

The three main minerals mined from Australian mineral sands deposits are the titanium-bearing minerals rutile and ilmenite and the zirconium-bearing mineral zircon. Rutile and ilmenite are used mainly in the production of titanium dioxide pigment. A small portion, less than 4% of total titanium mineral production and typically rutile, is used in making titanium sponge metal. Zircon is used as an opacifier for glazes on ceramic tiles, and is used in refractories and the foundry industry. Production in 2005 was from Western Australia, Queensland, Victoria and New South Wales.

Australia’s EDR of ilmenite is 214.9 Mt of which 59% is in Western Australia, 25% in Queensland and the rest in New South Wales (7%), Victoria (6%) and South Australia (3%). Australia accounts for 19% (the second largest holding behind China at 35%) of the world’s EDR of ilmenite. Queensland, New South Wales, Western Australia and Victoria together hold over 97% of Australia’s 20.5 Mt EDR of rutile, which, at 40% of world EDR, is the world’s largest.

EDR of zircon is 32.9 Mt, with Western Australia and Queensland holding just over 68%. In world terms, Australia’s EDR is 43% of the total and is the largest holding by any country.

Although Australia has substantial EDR of mineral sands, Geoscience Australia estimates that some 17% of ilmenite, 28% of rutile and 25% of zircon EDR is unavailable for mining. They are in areas quarantined from mining that are largely incorporated into national parks. Deposits in this category include Moreton Island, Bribie Island and Fraser Island, Cooloola sand mass, Byfield sand mass and Shoalwater Bay area (Queensland) and Yuraygir, Bundjalung, Hat Head and Myall Lakes National Parks (New South Wales).

In 2005 Australia produced 2.03 Mt of ilmenite, 177,000 tonnes of rutile, 55,000 tonnes of leucoxene and 426,000 tonnes of zircon. The bulk of Australia’s rutile and zircon production is exported compared with about 35% for ilmenite. The remaining ilmenite is upgraded to synthetic rutile. Australia was the world’s largest producer of ilmenite, rutile and zircon (with 23%, 47% and 40% of world output respectively) in 2005.

Nickel

Australia’s EDR of nickel increased by 6% to 23.9 Mt in 2005. Western Australia has the largest nickel resources, with over 90% of total Australian EDR. Australia holds the largest share of the world’s EDR, with 37%.

Australian mine production of nickel in 2005 increased by 1% to 189,000 tonnes, all from Western Australia. The value of all nickel products exported was $3.5b. Australia was the world’s third largest producer, accounting for 13% of estimated world nickel output.

Tantalum

Australia is the world’s largest producer of tantalum in the form of tantalum concentrates. Australia also has the world’s largest stock of tantalum resources, principally in its deposits at Greenbushes and Wodgina in Western Australia.

Australia has the world’s largest EDR of tantalum at 52,000 tonnes. This is approximately 95% of world EDR.

Uranium

Australia has 716,000 tonnes of uranium in Reasonably Assured Resources recoverable at costs of less than US$40/kilogram of uranium – this is the world’s largest resource and represents 37% of world resources in this category (OECD Nuclear Energy Agency & International Atomic Energy Agency, 2005). Almost all of Australia’s total resources are in six deposits:

• Olympic Dam (South Australia) which is the world’s largest uranium deposit
• Ranger, Jabiluka and Koongarra in the Alligator River region (Northern Territory)
• Kintyre and Yeelirrie (Western Australia).

Three uranium mines operated in 2005 – Ranger open cut, Olympic Dam underground mine, and the Beverley (South Australia) in situ leach operations. In 2005 Ranger produced 5,906 tonnes of uranium oxide, Olympic Dam 4,335 tonnes and Beverley 977 tonnes for a total of 11,218 tonnes, 6% higher than for 2004. Australia, with approximately 23% of world uranium production in 2005, is the world’s second largest producer after Canada (28%). While there are a number of undeveloped deposits in Western Australia, Northern Territory, South Australia and Queensland, uranium mining is only allowed to occur in the current three mines in the Northern Territory and South Australia.

Exports of uranium oxide in 2005 were a record 12,360 tonnes, valued at $573m. Exports are controlled by Australian Government bilateral safeguards agreements, which are designed to ensure that Australia’s uranium is used only for electricity generation and is not diverted to any military purposes. Importing countries must be signatories to the International Atomic Energy Agency’s safeguards arrangements and have entered into an agreement with the Australian Government to adhere to safeguard obligations for exporting uranium.

Australian mining companies supply uranium under long-term contracts to electricity utilities in the United States of America, Japan, European Union (United Kingdom, France, Germany, Spain, Sweden, Belgium and Finland), Republic of (South) Korea and Canada.

Zinc, lead, silver

Zinc is the 23rd most abundant element in the earth’s crust. The construction, appliance and vehicle manufacturing industries use large amounts of zinc, mainly as coatings on steel beams, sheet steel and vehicle panels in the automotive industry.

The widespread occurrence, relatively simple extraction, and combination of desirable properties have made lead useful to humans since at least 5000 BC. In deposits mined today, lead (in the form of galena) is usually associated with zinc, silver and sometimes copper, and is extracted as a co-product of these metals. More than half of the lead used comes from recycling, rather than mining. The largest use is in batteries for vehicles and communications.

The relative scarcity, attractive appearance and malleability of silver has made it suitable for use in jewellery, ornaments and silverware. Its extensive use in coins throughout history has declined over the past 40 years. In Australia, the 1966 fifty-cent piece was the last coin in general use to contain silver (80% silver, 20% copper). Silver is mined and produced mainly as a co-product of copper, lead, zinc, and to a lesser extent, gold. Today, photographic paper and film, followed by the electronics and jewellery/tableware industries are the most important users of silver.

Australian EDR of zinc is close to 42 Mt, with Queensland holding 62%. The Northern Territory, New South Wales, Western Australia and Tasmania also have zinc EDR.

Australia’s EDR of 23.8 Mt of lead is 32% of world EDR. Queensland has 60% of total Australian EDR. Other holdings are in the Northern Territory, New South Wales, Western Australia and Tasmania.

EDR for silver in 2005 was 44 Kt, with Queensland having the largest share at 67.5%. Other holdings occur in South Australia (12.5%), Northern Territory (11.3%), New South Wales (5.0%), and Western Australia (2.5%) with the remainder in Tasmania and Victoria.

Australia has the world’s largest EDR of zinc (18% of the world) and lead (32%), and the second largest EDR of silver (16%).

Mine production of zinc, lead and silver in 2005 was 1.37 Mt, 767,000 tonnes and 2,407 tonnes respectively. Production was higher for each commodity compared with 2004, with zinc up 33,000 tonnes, lead up 90,000 tonnes and silver up 170 tonnes. In production, Australia ranks second for lead and zinc after China and fourth for silver after Peru, Mexico and China. Cannington (Queensland) is the world’s largest and lowest cost silver and lead operation and produced almost 288,000 tonnes of lead and 43.9 million ounces of silver in 2005. Century (Queensland) had the largest zinc output at 501,000 tonnes.

OIL AND GAS

Map 16.26 shows significant locations of oil and gas production and includes oil and gas production locations, oil and gas pipelines and oil refineries.

16.26 LOCATIONS OF OIL AND GAS PRODUCTION AND PIPELINES – 2005

Crude oil and condensate

In 2005-06 production of total crude oil and condensate from the North West Shelf (off Western Australia) and the Gippsland Basin (Victoria) accounted for 41% and 19% respectively of total Australian crude oil and condensate production. The North West Shelf was the major producer of condensate during 2005-06 with 79% of total Australian production sourced from that region.

Liquefied natural gas (LNG)

LNG production has in previous years been solely from the North West Shelf Venture but in February 2006 production commenced from the LNG plant in Darwin (Northern Territory). Australian LNG production in 2005-06 was 12.38 Mt. Export earnings from LNG in 2005-06 were $4.4b, an increase of $1.2b on 2004-05.

Liquefied petroleum gas (LPG)

LPG is a valuable co-product of oil and gas production and petroleum refining. The major constituents of LPG are propane and iso- and normal-butane, which are gaseous at normal temperatures and pressures, and are easily liquefied at moderate pressures or reduced temperatures. Operations involving LPG are expensive in relation to other liquid fuels because LPG has to be refrigerated or pressurised when transported and stored. LPG is an alternative transport fuel for high mileage vehicles in urban areas, as well as a petrochemical feedstock and domestic fuel.

In 2005-06 the major producers were the Gippsland Basin and the North West Shelf accounting for 41% and 46% of total production respectively.

Sourced & published by Henry Sapiecha

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