South Australia on the World Stage

Dr. Paul HeithersaySouth Australian GovernmentDepartment of Energy and MiningJune 2019

Copper Supply/Demand

Electric Vehicles to Reach Cost Parity in

mid 2020’s

2016 $USD (thousand) and %

South Australia’s Copper Growth Strategy

Accelerate exploration,

discovery and information

Develop innovativeinfrastructure, services and research

Engage to build industry and community capacity

South Australia’s Copper Growth

Strategy

South Australia’s Copper Pipeline

South Australia Copper Scorecard

Resources Jobs Growth

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Resources and Energy Jobs Advertised, South Australia

Monthly July 2014 - May 2019

• BHP - Olympic Dam infrastructure upgrades &

SMA expansion spent $669m in FY2018 and

ongoing

• OZ Minerals – Carrapateena copper-gold mine

under construction (capital spend +$400m in 2019)

Q4 2019 commissioning + studies underway for a

$1.3 bn expansion in 2026 to double production.

• GFG Alliance – Whyalla steelworks $600m capital

upgrades to increase output, investing in

renewables and other grass roots mining projects

in SA

• Entry of major international players

Mining investment in South Australia

9

Carrapateena Province

What is the Transformation Energy Hub

Why is it important?

What energy technologies will the hub host?

What does the Hub offer?

Contact

Curnamona Copper belt

12

• Kalkaroo style mineralisation in a > 200 km long, prospective horizon (blue dashed line)

• Numerous drill intersections to be followed up (eg Croziers, Eurinilla, Lake Charles)

• Strong geological analogies to the prolific Zambian Copper Belt

• Aeromagnetics clearly identifies major domes and the prospective mineralised horizon position with shallow drilling follow up to locate economic mineralisation

Proving up a world class copper province

Developing Projects

South Australia’s Copper ResourcesKalkaroo

Transformational capital injection with

Havilah-GFG Alliance.

Largest undeveloped open pit Cu – Au

deposit in Australia

Broken Hill

ADELAIDE

CANBERRA

Oak Dam West discoveryIOCG mineralisation

Announced by BHP, Nov. 2018

425m @ 3% copper, 0.59 g/t gold + U + Ag

Inc. 180m @ 6% copper, 0.92 g/t gold

Gawler Craton Survey

Gawler Craton Airborne Survey

• Next generation airborne magnetic and radiometric coverage for South Australia

• World’s single largest contiguous airborne TMI survey; 200m line spacing

• Value add products & collaboration to determine Optimum magnetic source solutions for depth to crystalline basement

• Acquisition status: 99% complete

Geophysical targeting methodologies

• Spatial statistics to quantify correlations between magnetic and gravity responses

• Gravity and magnetic polygons over selected IOCG deposits/prospects

• Oak Dam West gravity high

Katona and Fabris, in press. GAC-MAC 2019, Quebec, SC Volume “Exploring for IOCG Deposits”

OLYMPIC DAM

OAK DAM

Deposit Footprints

IOCG prospectivity

- weighted ingredient mapping

• Fluid/metal primed lower crust – MT conductors

• Structural conduits –interpreted faults and shears

• Heat + metal sources – c. 1590 Ma plutons

• Contact between 1590 Ma magmatism and low grade volcano-sedimentary basins

Geological “pre-requisites” Residual Gravity Anomalies- statistical clustering*

Anomalies ranked by geological pre-requisites

Geological pre-requisites + gravity anomalies weighted by clustering

*Katona & Fabris, 2019, in press (in Iron oxide copper-gold (Ag-Bi-Co-U-REE) and affiliated deposits, Corriveau, L., Mumin, A.H. and Potter, E.G., eds, Geological association of Canada, Short Course Note 21).

(based on solid geology)

IOCG prospectivity

- comparing deposits with prospectivity mapping

Soon to be released!

Major deposits score highly in prospectivity ranking

Large areas score highly but are currently un-tested

Ranking distribution of map cells

Geophysics – Magnetotellurics

• Mapping zones of crust that have witnessed large scale fluid movement – potentially informing prospectivity.

• Results to date

– Olympic Domain: connection between deep crustal low resistivity beneath zones beneath and mineral occurrences in this world class IOCG belt.

– Flinders Ranges – Curnamona Province: identified conductivity anomalism associated with known mineralization.

New IOCG knowledge from GSSA

In press - Geological Association of Canada Special Volume –Exploring for IOCG deposits

• Defining geophysical signatures of IOCG Deposits in the Olympic Cu-Au Province South Australia, using Geophysics, GIS and Spatial Statistics. Laszlo Katona and Adrian Fabris

• Geochemical characteristics of IOCG systems: Examples from the Olympic Cu-Au Province, South Australia. Adrian Fabris

Minerals – new review paper on South Australia IOCG systems out soon:

Government Geoscience projects

– targeting discovery

• Completion of key projects – delivery to sector

– Gawler Craton Airborne Survey,

– Olympic Domain MT, – Mineral Systems – Hylogger

hyperspectral analysis• Rollout of new projects

– IOCG Masterclass 2-3 Dec 2-3 2019

– CSIRO Characterising Cover Q3 2019– Advanced Data analytics - Uni SA School of

Mathematics Q4 2019

$10 million over three

years

Towards exploration for

untapped mineral resources to

grow jobs and investment in the

state’s economy.“By accelerating our knowledge and adopting cutting-

edge technology, we’ll help bring additional mines to

market sooner, and more growth to South Australia."

Minister van Holst Pellekaan.

“Today’s announcement will stimulate future growth and

enhance the state’s position as a world-leading mining

investment destination.”

Minerals Council of Australia

Accelerated Discovery Fund

22

South Australia’s Copper Growth Strategy

Accelerate exploration,

discovery and information

Develop innovativeinfrastructure, services and research

Engage to build industry and community capacity

Energy and Mining Collaboration

The Transformation Energy Hub will be located at

Carrapateena project near its Exploration Village.

Carrapateena is a copper-gold project located approximately 160 km north of Port Augusta

What is the Energy and Mining CollaborationThe Energy Hub is a collaboration project initiated by OZ Minerals to develop energy solutions for modern mining. The experiments and projects focus on integration of renewables, demand management for minerals processing.

Why is it important?The energy landscape is changing. Mining companies play a critical role in the energy transition. To do this sustainably and to meet the goal of the Paris Agreement, the mining industry needs to act. To develop solutions which enable us to integrate more renewable energy on mine sites we need to approach problems without knowing the solution. This is the core of transformation. Agile approaches help us to deal with complex challenges and the energy hub will help us on this journey.

What energy technologies will the hub host?The initial setup of the hybrid energy generation power station includes, solar, wind, and diesel power generators. To store renewable energy, a battery is part of the solution. We expect that things change – and you can be part of our energy transition.

What does the Collaboration offer?A platform in which ideas, prototypes and products can be tested within a mining environment. We believe that great solutions are developed together with the best partners. If you believe your product, process or team can help to implement innovations that the mining industry needs, we want to hear from you. Submit your proposal and let's shape the future of mining.

Contact www.ozminerals.com/sustainability

Innovative Research – IMER

• Australian Research Council Copper Uranium

Transformation hub

• World leading Radionuclide Analysis

capability - University of Adelaide

• PRIF Consortium “Unlocking Complex Resources

through Lean Processing”

• Multidisciplinary research team with SA

METS

• Advanced sensors and intelligent systems,

data analytics and machine learning

• Partners include BHP, OZL, Uni SA, number

of local and international METS companies

South Australian Centre of Excellence in

Predictive Analytics

• Established South Australian Centre of Excellence

in Predictive Analytics in 2016

• Integrating innovative technologies developed by

South Australian Companies into mining and energy

operations nationally and globally.

• Project partners

SANTOS

IPACS (a South Australian technology company),

IBM, SKF, OSIsoft and Schneider Electric.

Project has created a South Australian-based

commercial centre to service SANTOS and

other resource companies using data analytics

to lower the costs of production.

South Australian Companies METS

companies leading the way

South Australian companies Consilium Technology and Scantech International have developed an

Intelligent Control (IC) system for Nutrien (headquartered in Canada) - one of the world's largest

fertiliser manufacturers.

At Nutriens Aurora Plant in North Carolina, Scantech’s Geoscan on-belt analysers measure the

content of incoming phosphate rock.

The IC system, then controls the addition of sulphuric acid to the reactor to optimise the chemical

balance and maximise the phosphate yield. The technology is being marketed globally to existing and

new Geoscan users as an extension of capability.

South Australian Resources Information

Gateway

BIG DATA TRANSFER

https://map.sarig.sa.gov.au/

South Australia’s Copper Growth Strategy

Accelerate exploration,

discovery and information

Develop innovativeinfrastructure, services and research

Engage to build industry and community capacity

Engaging Aboriginal Business opportunities

Workshop actions

• Develop two regional case studies in South Australia

• Targeted briefings on applying AEMEE checklist

• Support regional technical and governance skill

development

AEM flight line 503401

DH1a• AEM identified paleovalleys & potential

water resources

• Drilling proved saprolithic fractured rock

aquifer underlying paleovalley sediment

• New water source for community /

resource development

Geoscience for community: water for regions

Welcoming our

Chile Friends

South Australia’s Copper Growth Strategy

Accelerate exploration,

discovery and information

Develop innovativeinfrastructure, services and research

Engage to build industry and community capacity

This Photo by Unknown Author is licensed under CC BY-SA

This Photo by Unknown Author is licensed under CC BY-SA

South Australian Mineral Exploration