2015 broken hill resources investment symposium - south australian department for state development...

www.statedevelopment.sa.gov.au

The State of South Australia open for mineral business and working to grow our minerals value chain

Dr Ted Tyne Executive Director, Mineral Resources South Australian Department of State Development

Resources Investment Symposium 25 – 27 May, 2015, Broken Hill

The State of South Australia – industries and markets

The State of South Australia – the importance of China, India and South East Asia

The State of South Australia – the importance of China, India and South East Asia and building long term partnerships

The State of South Australia – growing our trade, export and investment opportunities with China and South Australia’s sister province Shandong

The Hon Jay Weatherill Premier of South Australia leading South Australia’s China Trade & Investment Mission, May 2015

Representatives from more than 200 companies across industry sectors are joining the largest ever South Australian China Trade Mission in May 2015

Delivering Outcomes for Economic Priority No.1

8 Department of State Development

Five Point Plan to unlock the full potential of South Australia’s resources, energy and renewable assets. 1.  Plan for Accelerated Exploration PACE 2.  Implementing recommendations of the Oil and

Gas Roundtable 3.  South Australia Copper Strategy 4.  Low Carbon Investment Plan 5.  South Australia Iron Ore Strategy

SA’s Share of Australia’s Key Mineral Resources

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68% COPPER

Minerals and Petroleum Production 2013-‐14 -‐ $7.5 billion ($5.6billion – Minerals and $1.9billion – Petroleum)

RECORD PRODUCTION


• Petroleum ($510.7m) and Minerals ($106.7m)

$617.4 million EXPLORATION EXPENDITURE 2014

• ~$40 billion of potenAal capital for Minerals and Energy projects in the Major Developments Directory

$1.8 billion CAPITAL EXPENDITURE 2013-‐14

• Minerals ($5.6 b) and Petroleum ($1.9 b)

$7.5 billion RESOURCES PRODUCTION 2013-‐14

• Minerals ($4.3 b) and Petroleum ($0.2 b) • 39% of South Australia’s total exports ($11.7 b)

$4.5 billion EXPORTS 12mths to January 2015

• Minerals ($157.4 m) and Petroleum ($133.9 m)

$291.3 million ROYALTIES 2013-‐14

• Up from 6,641 ten years ago

11,908 people EMPLOYED February 2015

South Australian Resources Industry Scorecard

RECORD HIGH

RECORD HIGH

Mineral Exploration Highlights 2014

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•  Havilah Resources – Crozier Dam Cu prospect (Jan 2014)

•  Ironclad Mining – Hercules East Prospect - Mn (Jan 2014)

•  Musgrave Minerals – Menninnie Dam Pb–Zn discovery , Frakes Ag prospect (Feb 2014)

•  Adelaide Resources – Moonta Cu-Au Project, Alford West deposit (April, July 2014)

•  Marmota Energy – West Melton Cu Project, Champion discovery (April 2014)

•  Trafford Resources – Wilcherry Hill , Zealous Tin prospect ( April 2014)

•  Minotaur Exploration – Mingary Au Project (May 2014)

•  OZ Minerals – Khamsin IOCG deposit- Maiden Resource 202Mt at 0.6% Cu, 0.1g/t Au, 1.7g/t Ag

and 86ppm U, for 1.1Mt contained Cu, 900,000oz Au and 11Moz Ag (May 2014)

•  Centrex Metals - Kimba Gap Maiden Resource, 487Mt ave. head grade 24.7% Fe with DTR 18.5% (July 2014)

•  Archer Exploration –Campoona/Wilclo South, Australia’s largest graphite resource (Aug 2014)

•  Kalyan Resources /Orogenic Exploration Flinders Island micro diamond discovery (Oct 2014)

•  Havilah / MMG Exploration – Birsksgate prospect, new copper discovery (Oct 2014)

•  Investigator Resources - Paris Ag deposit, continuing significant results after Maiden Resource last year, 5.9Mt 110g/t Ag and 0.6%Pb – for 20Moz Ag and 38kt Pb (Oct 2014)

•  Apollo Minerals – Commonwealth Hill- Titan Project Fe, ilmenite, apatite (Nov 2014)

Major Mining Developments 2014

•  Quasar Resources/Alliance Resource – Four Mile Uranium Mine opened (June 2014)

•  Havilah Resources – Portia Gold Mine Approved (October 2014)

•  Rex Minerals – Hillside Cu-Au Project Mineral Lease Approval (September 2014)

•  Iron Road – Central Eyre Iron Project DFS released (February 2014)

•  Oz Minerals – Carrapateena Cu-Au deposit PFS released (August 2014)

•  BHP-Billiton – Olympic Dam Heap Leach Trial Approval (September 2014)

•  Hillgrove Resources – Kanmantoo Cu mine additional Mining Lease and Revised PEPR (July 2014)

Mineral Industry Highlights 2015

Arrium Mining - Iron Knob railing first ore since its closure in 1999. Iron Road - Central Eyre Iron project with an additional 819 Mt (22% resource increase) now Australia’s largest magnetite deposit.

Havilah Resources - Portia Gold mine under construction.

Valence Industries - Uley Graphite Mine first shipment of graphite dispatched to port. Lincoln Minerals - Kookaburra Gully Graphite Project mining lease proposal lodged.

Archer Exploration - Eyre Peninsula graphite project mining lease proposal to be lodged.

Photo: Courtesy Valence Industries - first shipment of graphite flakes, March 2015

Adelaide Resources - Moonta copper project latest exploration has delivered more copper.

South Australian Iron Ore Resources

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Photo courtesy Arrium Mining

South Australian Uranium Resources

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Beverley Airstrip

South Australian Copper Resources

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Photo courtesy BHPB Olympic Dam

The State of South Australia – A Copper Strategy

68% 25% 400+

of Australia’s economic demonstrated copper resource

of Australia’s mined copper production

copper exploration licences

Why A Copper Strategy?

Copper will remain supply constrained and a deficit is expected at the end of this decade across world South Australia well placed to supply this deficit

19 0.85

0.90

0.95

1.00

1.05

1.10

(8)

(4)

0

4

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Cu grade (RHS) Surplus/deficit (LHS)

Copper grade1 decline will lead to a market in deficit (Mt) (% Cu in the mill)

Source: Wood Mackenzie.via BHPB 1. ProducAon from current operaAng mines and commi_ed new projects

What is South Australia's Copper Strategy?

•  Joint South Australian industry and government approach

•  Targeting a three times increase in

export of copper over 15 years from 300,000 tonnes pa

•  1 million tonnes per year by 2030 •  South Australia aims to generate

significant mining growth, economic value and jobs across the resources value chain

Department of State Development

Copper Summit May 2015


•  Led by Minister for Mineral Resources and Energy

•  Challenges, opportunities and actions

identified

•  108 attendees – 90 pages of ideas

•  BHPB – OZ Minerals – Hillgrove

•  Universities and Services industries

Copper Summit – Key themes

•  Get South Australian projects to head of international mine development queue

•  Bring forward discovery of big deposits

By:


COSTS EXPLORATION INNOVATION LINKS

Copper Summit– Achieving 1 Mt by 2030

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Copper Summit– Achieving 1 million tonnes


Chile Peru

USA

51

Mt Cu-‐eq

A Discovery Gap to be filled

Source: MinEx ConsulAng March 2012

South Australia

•  Improve copper concentrates & production

•  Involves local universities

•  Findings to benefit all SA copper producers

OZ Minerals Research Partnership

Copper Summit – Early Action Ideas

•  Review cost drivers •  Mineral processing research

to remove impurities •  Access/discovery -

engagement with landholders/Aboriginal Communities

•  Linking existing suppliers into supply chains and grow their capability

•  Infrastructure development in Gawler Craton


South Australian Government initiatives to support our resources sector

•  Copper Strategy 2015 & OZ Minerals Research Partnership •  PACE Frontiers – new regional surveys and PACE collaborative drilling •  PACE Frontiers - Mineral Systems Drilling Program

•  Strategic Land Access Initiatives •  Resources Infrastructure Taskforce

•  International Partnerships & Collaborative R&D Projects •  New State Drill Core Reference Library •  Online Geoscientific Data Delivery – SARIG

•  Mining and Petroleum Centre of Excellence •  Mining Industry Participation Office •  Case Management Coordination – Major Mine Approvals

•  Streamlined Mining Assessments & Approvals including EPBC •  Unconventional Petroleum Roadmap

•  Nuclear Fuel Cycle Royal Commission •  Nyrstar Port Pirie Smelter Transformation

South Australia’s Plan for Accelerating Exploration

Government-led precompetitive geoscientific initiative

•  Outward looking

•  Driven by collaboration and partnership PRIORITY 1: Unlocking the full

potenKal of South Australia’s resources, energy and renewable

assets

Bringing forward new discoveries

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PACE success factors Ø  Highly prospective state. Ø  Fortunate timing coinciding with the onset of the global

exploration boom. Ø  Strong support from Minister Koutsantonis and

government. Ø  International promotion. Ø  Extensive, easy to understand online data via SARIG. Ø  Exploration and development approvals in South

Australia having a one-stop shop approach. Ø  Precompetitive geoscience programs focused on

information relevant to explorers.

PACE Discovery Drilling 2015

•  27 successful projects

•  $2 million of collaborative drilling grants

•  $4.9 million estimated additional company expenditure

•  ~$6.9 million est. total program value

PACE Mineral Systems Drill Program 2015

Joint project - designed by the Geological Survey of SA in partnership with DET CRC and exploration industry Unique approach •  Field test DET CRC technology – real time drilling

results and assays •  Integrated mineral systems mapping approach •  Specialised application of prospectivity indices to

recognise footprints •  Explorers gain instant access to results and

analysis from field drilling •  More drilling metres for funds expended •  Drill-rig mobilisation •  Site clearances undertaken by the Department

Supporting Access to Land


Land Access Initiatives

Land Access

EPBC Act AccreditaAon State/

Commonwealth

MLUF State

Planning Reform State

Native Title ILUAs DSD-AGD

Admin Agreement DSD-DEWNR

RAMP DSD-DPTI

EPLUS DSD-PIRSA

Resources Infrastructure Taskforce


Industry Consultation

•  Key Stakeholders for infrastructure requirements

Develop intervention / assistance / support options

Regional Infrastructure

•  Develop multi user access models •  Confirm infrastructure demands •  Develop commercial regional infrastructure solutions

for key resources projects.

Mining Clusters with Highest Demand

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The State of South Australia – international mineral resource partnerships

New State Drill Core Reference Library

SARIG delivery of Open Data


“leading example of international best practice of open data delivery” 2015 release: Open data licensing of precompetitive geoscientific digital data delivered by SARIG:

•  Spatial Map Layers & Web Services

•  Databases (SA Geodata & geophysical data)

Open Data Licensing

South Australian Government precompetitive geoscientific data

Economic benefits Innovated software solutions

Transparency

Nuclear Fuel Cycle Royal Commission •  Inquire into the feasibility and viability of

South Australia’s involvement in all stages of the nuclear fuel cycle, including any associated risks and opportunities.

•  Issues Papers on each stream including exploration, extraction and milling to be released soon.

•  Invitation for written submissions will coincide with release of Issues Papers.

•  Interested parties will have about three months to prepare a written submission.

•  More details on the Commission process to be released through its website in near future.

www.nuclearrc.sa.gov.au

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Port Pirie – Smelter 1903


42

Port Pirie – Blast Furnace 1915


43

Port Pirie – Smelter 1932


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Port Pirie – SA Govt. Uranium Plant 1950


Nyrstar Port Pirie Smelter Transformation

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•  A$ 514m investment on budget, on time for 2016 commissioning

•  Additional A$ 85m Oxygen Plant investment – Air Liquide

•  Site, construction works well advanced

•  State’s indemnity issued later this year

46

Port Pirie – Nystar Smelter Transformation 2015


•  Outotec’s Ausmelt TSL (top submerged lance) furnace bath smelting technology

•  New 1000t/d sulphuric acid plant

•  New Oxygen Plant – BOO arrangement with Air Liquide investing $85m

47

Port Pirie – Nystar Smelter Transformation 2015


• A$ 514m investment • on budget • on time - for 2016 commissioning

South Australia – open for business and working to grow our minerals value chain

•  Copper Strategy 2015 & OZ Minerals Research Partnership •  PACE Frontiers – new regional surveys and PACE collaborative drilling •  PACE Frontiers - Mineral Systems Drilling Program

•  Strategic Land Access Initiatives •  Resources Infrastructure Taskforce

•  International Partnerships & Collaborative R&D Projects •  New State Drill Core Reference Library •  Online Geoscientific Data Delivery – SARIG

•  Mining and Petroleum Centre of Excellence •  Mining Industry Participation Office •  Case Management Coordination – Major Mine Approvals

•  Streamlined Mining Assessments & Approvals including EPBC •  Unconventional Petroleum Roadmap

•  Nuclear Fuel Cycle Royal Commission •  Nyrstar Port Pirie Smelter Transformation

49

Broken Hill – Birthplace of our Industrial Nation

Department of State Development Broken Hill – Propriety Mine 1888

move SA Border to this side


Dr Ted Tyne Executive Director, Mineral Resources South Australian Department of State Development

South Australia – open for business and working to grow our minerals value chain Resources Investment Symposium 25-27 May, Broken Hill

Contact


Department of State Development Level 7, 101 Grenfell Street Adelaide, South Australia 5000 GPO Box 320 Adelaide, South Australia 5001

T: +61 8 8226 3821

2015 broken hill resources investment symposium - south australian department for state development...

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