Mr Palmer said the companies had signed a memorandum of understanding to build the cruise liner in China, with the ship’s maiden voyage from England to North America scheduled for late 2016.

“It will be every bit as luxurious as the original Titanic but of course it will have state-of-the-art 21st-century technology and the latest navigation and safety systems,” Mr Palmer said.

Mr Palmer said the rebuild was a tribute to the spirit of the men and women who constructed the original Titanic.

The Titanic. Photo: AP

“These people produced work that is still marvelled at more than 100 years later and we want that spirit to go on for another 100 years,” he said.

The Titanic was commissioned by the company White Star Line and was the world’s largest liner, measuring nearly 270 metres long, 53 metres high and weighing approximately 40,000 tonnes.

It sank in 1912, killing more than 1500 passengers and crew.

Asked today if the Titanic II could sink, Mr Palmer told reporters: “Of course it will sink if you put a hole in it.

He added: “It is going to be designed so it won’t sink.

“It will be designed as a modern ship with all the technology to ensure that doesn’t happen.

“But, of course, if you are superstitious like you are, you never know what could happen.”

A spokesman for Mr Palmer said the cost of the project was unknown.

“A final budget hasn’t been set and I don’t think he’ll reveal the price to be honest,” the spokesman said.

He said the design of the new Titanic would be as close to the original as possible but would have “state of the art engineering” and would run on diesel rather than coal power.

“The technology will be 100 years improved,” the spokesman said.

Mr Palmer said a historical research team was involved in the design of the Titanic II, which would have the same dimensions as its predecessor, with 840 rooms and nine decks.

The only differences would be found below the water line, he said, and would include a bulbous bow for greater fuel efficiency and diesel generation, and an enlarged rudder and bow thrusters for improved manoeuvrability.

“Titanic II will be the ultimate in comfort and luxury with on-board gymnasiums and swimming pools, libraries, high class restaurants and luxury cabins,” Mr Palmer said.

He said the new ship would also include an exhibition room, located in the space of the old coal boilers, which will showcase Queensland and its abundance of opportunities to international passengers.

The Chinese navy has been invited to escort the Titanic II on its maiden voyage across the northern hemisphere from England to New York, he said.

Mr Palmer owns the Sunshine Coast’s Coolum Golf and Spa Resort, and the Gold Coast’s Robina Woods and Colonial golf courses.

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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.

Sourced & published by Henry Sapiecha

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TIN & TUNGSTEN MINING IN ENGLAND BY WOLF MINERALS

PLANS by ASX-listed Wolf Minerals to become a tungsten and tin producer from its Hemerdon project in south-west England have attracted a rare demonstration of government support for the jobs and wealth creation ability of mining projects.

Wolf announced last week that the support came directly from Lord Green of Hurstpierpoint, the British Minister of State for Trade and Investment, following Wolf receiving planning consents for the Devon development.

In a letter to the company, Lord Green said Hemerdon was an important project to the community in terms of jobs and wealth creation, and to the British and wider European Union in securing supplies of tungsten.

”I am aware that tungsten ranks highly in both the British Geological Society and EU’s critical raw materials lists and that it has unique properties that are impossible to replace in certain specialised industrial applications,” the former HSBC chairman said.

The British Geological Survey in September listed tungsten as one of the top five strategically important metals.

Wolf is now working on securing $80 million in debt funding for the project, the development of which would serve to ease the grip China has on global supplies of tungsten. More than 80 per cent of global supply comes from China, which has curbed exports of the ”strategic” metal.

Tungsten prices rose by more than 30 per cent last year and are now more than eight times their level before taking off in 2003 in response to limited non-Chinese mine supplies at a time of rising consumption.

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Itochu to Invest 22 Billion Yen

in Ivanhoe Platinum Mine

June 03, 2011, 1:29 AM EDT

June 3 (Bloomberg) — Itochu Corp. said it has agreed to acquire an 8 percent stake from Ivanhoe Nickel & Platinum Ltd. in a mine project in South Africa for exploration and development of nickel and platinum-group metals.

The Tokyo-based company will invest 22.4 billion yen ($277 million) for the stake, it said in a statement today. The company now holds an aggregated stake of 10 percent in the Platreef project after it invested $10 million to buy 2 percent in September 2010.

Mining at the project located in the Northern Limb of the Bushveld Complex is expected to start in 2017, Itochu spokesman Yasuhiro Terashita said earlier by phone. Platinum-group metals, which include palladium and rhodium, are used as catalysts to clean exhaust gas from automobiles.

The project is expected to produce 20 metric tons of platinum-group metals each year, Satoshi Kondo, president of Itochu Mineral Resources Development Corp., a unit of Itochu, told reporters today.

–Editors: Jarrett Banks, Matthew Oakley

To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Ichiro Suzuki in Tokyo at isuzuki@bloomberg.net

To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net; Andrew Hobbs at ahobbs4@bloomberg.net

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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.

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Queensland LNG Project

January 13, 2011, 12:49 AM EST

Jan. 13 (Bloomberg) — Santos Ltd., Australia’s third- largest oil producer, has committed to building a $16 billion liquefied natural gas project, helping the Queensland state economy recover from “devastating” floods.

Santos and partners Total SA, Petroliam Nasional Bhd. and Korea Gas Corp. will develop a venture at Gladstone that’s expected to produce 7.8 million metric tons of LNG a year and create 5,000 construction jobs, the Adelaide-based company said in a statement today. The site is about 550 kilometers (340 miles) north of the state capital Brisbane, which is experiencing its worst floods since 1974.

“These floods will have a lasting personal, environmental and economic impact on Queensland,” Santos Chief Executive Officer David Knox said on a call with reporters. “This project will be helping Queensland to get back on its feet.”

The venture is one of four on the central Queensland coast planning to liquefy gas extracted from coal deposits for shipment to Asian clients. BG Group Plc, the U.K.’s third- largest gas producer, said on Oct. 31 that it would build the Queensland Curtis LNG development at a cost of $15 billion.

“It’s all down to project execution now,” said Benjamin Wilson, an analyst at JPMorgan Chase & Co. in Sydney. Because of competition for labor, it’s important to approve engineering and construction contracts “as quickly as possible.”

Costs, Jobs

Santos rose after the announcement, advancing 2.2 percent to A$13.45 at the 4:10 p.m. close in Sydney, the most in more than three weeks, compared with a gain of 1.5 percent for the benchmark S&P/ASX 200 Index.

The oil and gas explorer has said it is signing contracts for the development of the project at fixed prices to reduce the risk that labor shortages will drive costs higher. Santos has awarded work to Bechtel Corp., Saipem SpA and Fluor Corp.

BG has said its venture is expected to generate 5,000 construction jobs during the next four years. BG’s project will have two processing units with a combined capacity of 8.5 million tons of LNG a year.

Santos anticipates 1,500 jobs from the project in the first half of this year and that construction will gradually “ramp up” before peaking in 2013, Knox said. The Australian company will own 30 percent of the project, while Kuala Lumpur-based Petroliam Nasional, or Petronas, and Paris-based Total will each own 27.5 percent. Korea Gas will have 15 percent.

Rebuilding After Floods

“Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods,” state Premier Anna Bligh said in the Santos statement.

The venture aims to begin exports in 2015, generating an average of $6 billion in annual revenue and has combined supply agreements worth more than $120 billion, Santos said last month.

“This project and economic development more generally is important in underpinning the skills, tax revenue, wealth and capacity to respond and rebuild in the aftermath of the current flood crisis in Queensland,” Australian Energy Minister Martin Ferguson said in the statement.

ConocoPhillips and Origin Energy Ltd. plan a rival coal- seam gas-to-LNG venture in Queensland targeting rising Asian demand for cleaner-burning alternatives to coal. Arrow Energy, acquired last year by Royal Dutch Shell Plc and PetroChina Co., proposes a fourth LNG project in the state.

Gorgon LNG

Santos is feeding its project with gas resources from the Bowen and Surat Basins in southeast Queensland and building a 420-kilometre pipeline to Gladstone. The floods aren’t expected to cause any delays to the development schedule, Knox said.

Santos has “plenty of reserves available to us” to support two LNG processing units, or trains, at the Gladstone site, Knox said on the call.

The Santos-led venture will have more than half the capacity of the A$43 billion Gorgon LNG project that Chevron Corp. and partners Exxon Mobil Corp. and Shell are building in Western Australia. The country’s largest resources development is due to begin LNG exports in 2014 from a three-unit, 15 million ton-a-year facility and may add a fourth and perhaps a fifth processing unit.

LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation by ship to destinations not connected by pipeline. On arrival, it’s converted back into gas for distribution to power plants, factories and households.

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BHP Billiton and ArcelorMittal

Terminate Discussions to Combine

Assets in Liberia and Guinea

8 September 2010

BHP Billiton and ArcelorMittal had jointly announced they have ended discussions to combine the two companies’ iron ore interests in Liberia and Guinea into a single joint venture. They were unable to reach a commercial agreement. BHP Billiton and ArcelorMittal have continued to advance their iron ore interests in West Africa independently and work closely with governments as well as their communities.

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The exposed ore visible in the pit at the Cairn Hill Mine near Coober Pedy

Resources developer, IMX Resources Limited (ASX:IXR) is pleased to announce that it has received $14.6 million from private Chinese investor Sichuan Taifeng.

IMX Board will use these funds to continue the development of the Cairn Hill Phase 1 project in South Australia. Importantly, shipping is expected to commence in mid to late Q3. Continue reading ?

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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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