South Australian Minerals and Energy Resources Overview 10th GMUSG / SACOME Annual Resources Industry Conference & Trade Expo Whyalla – 3 September 2014 Dr Paul Heithersay Deputy Chief Executive Resources and Energy
South Australia’s Major Mines and Resource Projects 2
South Australian Resources Industry Indicators $647.6 million EXPLORATION EXPENDITURE - 2013/14 • Petroleum ($531.3m) and Minerals ($116.3m) $1.8 billion new CAPITAL EXPENDITURE – 12mth to June 2014 • ~$30 billion of potential capital for Minerals and Energy projects in the Major Developments Directory RECORD HIGH $7.0 billion resources PRODUCTION - 2013 • Minerals ($5.4 b) and Petroleum ($1.6 b) RECORD HIGH $4.8 billion EXPORTS – 12mth to June 2014 • Minerals ($4.6 b) and Petroleum ($0.2 b) RECORD HIGH • 39% of South Australia’s total exports ($12.4 b) $291.3 million ROYALTIES – 2013/14 • Minerals ($157.4 m) and Petroleum ($133.9 m) RECORD HIGH 16,208 people EMPLOYED – May 2014 • more than double - 6,641 ten years ago RECORD HIGH 3
Exploration Expenditure Minerals and Petroleum exploration expenditure 1998-99 to 2013-14 For 2013-14 was $647.6 million ($531.3m – Petroleum and $116.3m – Minerals) Source: ABS data cat. 8412.0 June 2014 4
Onshore and Offshore Oil and Gas Emerging conventional and unconventional oil & gas boom South Australia’s history of oil and gas exploration extends back to 1866 with the first oil exploration in the Otway Basin. South Australia has 14 petroleum basins (12 onshore, 1 offshore, 1 on-and-offshore), however currently only three are producing commercial hydrocarbons ONSHORE COOPER – EROMANGA BASINS The Cooper-Eromanga basins represent a world class hydrocarbon province (Australia’s largest, most mature onshore basins for petroleum production) and has been the centre of South Australia's exploration, development and production activities for 50+ years. Both the Western Flank oil play and several major unconventional gas resource plays are, and will leverage on existing processing and transport infrastructure connecting the basin nationally to major cities and LNG export markets ONSHORE OTWAY BASIN Otway Basin contains both mature and immature conventional and unconventional oil and gas plays, with high potential for further discoveries. The onshore area is regarded as the State’s second most prosperous petroleum basin OFFSHORE BIGHT BASIN The Bight Basin is the largest, prospective but unexplored Cretaceous marine delta- play in the world. To date, most exploration drilling in the Bight Basin has focused on the margins of the Ceduna and Duntroon Sub-basins. The BP – Statoil Joint Venture is leading in exploration the offshore Bight Basin, with fast-followers Chevron, and the Murphy-Santos joint ventures FRONTIER BASINS Prospectivity is being explored in the Pedirka (including oil shows in the Poolowanna Trough), Officer and Arckaringa Basins Source: Updated form of display from Invest in SA - Department of State Development 5
Setting the Scene – Oil and Gas Simpson Pedirka Basin • Four Cooper CO2013 bid round Basin Eromanga Basin blocks offered versus aggregate $103 Cooper million bids Moomba Arckaringa Officer Basin Basin Basin • Western Flank oil play in the Cooper- Eromanga continues with 50+ percent success in finding average 2.5 million Olympic Arrowie Dam Mine Basin barrels of oil • Encourage results from Otway Basin exploration Polda Basin • Bight Basin attracting the majors – Bight Stansbury Basin massive investment Basin • Frontier basins’ plays include: Petroleum exploration licence Conventional oil and gas (Onshore: PEL Offshore EPP) 200 km Petroleum exploration licence Unconventional regional plays application (PELA) Gas pipeline Otway Acreage release blocks – Gas and liquids pipeline bids close 29 May 2014 Basin Oil pipeline Selected mine Parks with no petroleum exploration access 6
Roadmap for Unconventional Gas Now under the auspices of the Roundtable for Oil and Gas Projects Designed to inform industry strategies, government policies, and regulations to facilitate unconventional gas projects in ways that SA communities welcome. Working groups of the Roundtable: 1. Training; 2. Supply hubs, roads, rail and airstrips for the Cooper-Eromanga basins; 3. Water use in the Cooper-Eromanga basins; 4. SA-Qld ‘wharf to well’ corridors for the Cooper- Eromanga basins; 5. Cost effective, trustworthy GHG detection; and 6. Supplier’s forum to boost local content 7
Mineral and Petroleum Production Production by commodity 2000 – 2013 In 2013 was $7 billion ($5.4b – Minerals and $1.6b – Petroleum) Record 8 Production 7 6 5 4 3 2 1 $ Billion 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Copper Hematite Magnetite Gold Uranium Coal Other Metallics Industrial Construction Gemstones Caroline 1 CO2 (well) Condensate Crude Oil Ethane LPG Natural Gas 8
South Australian Mining Industry Dimensions Mineral Tenements - July 2014 • Mining Leases (ML’s) 866 • Extractive ML’s (EML’s) 655 Private Mines (PM’s) 235 • • Operating Mines 450 • Major Operating Mines ~20 • Opal Mining Claims 391 • Advanced Mineral Projects ~30 Former Mines 3500 • Commodities mined • copper, gold, coal, iron ore, zinc, lead, silver, uranium, heavy mineral sands • Industrial Minerals - salt, silica sand, gypsum • Extractives, dimension stone, opal & other gemstones Mining Methods : open cut, underground, in-situ recovery Processing Methods : flotation, carbon in pulp, crushing and screening, cyanide leaching, ion exchange, magnetic separation, salt harvesting, solvent extraction Middleback Ranges iron ore operations (courtesy Arrium Mining) 9
Olympic Dam - long life Resource Life - BHP Billiton’s core assets Olympic Dam massive 910 year resource life - longest life core asset of global mining major, BHP Billiton • Contained resource: 78 Mt copper, 2.5 Mt uranium oxide, 100 Moz gold & 307 Moz silver • world’s largest uranium deposit • world’s 4th largest copper deposit • ~65% of Australia’s copper resources Premier’s Award for Excellence in Social Inclusion 2014 Prisoner reintegration employment • opportunities program • Archeological program with Aboriginal communities Minister Koutsantonis (right) presenting award to Darryl Cuzzubbo (BHP Billiton) 10
Olympic Dam – way forward • 2013-14 production • 184 400t copper, 3988t uranium oxide, 121 335 oz gold, 972 000 oz silver • Technology studies proceeding Lab scale leach testing continues BHPB now considering on-site Heap Leach Demonstration trial (small scale) Applications referred to State and Federal Governments If approved, construction to commence July 2015, operation to commence Oct 2016 for 3 year trial GEO-MEMBRANE LINED COPPER HEAP LEACH IN ARIZONA, USA 11
Carrapateena – positive PFS OZMinerals announcement - 18 August Pre-Feasibility study confirms Carrapateena is a technically and financially viable project • Capital cost $2.985 billion • 12.4 Mtpa block caving via 2 x 500m lifts • producing copper-gold concentrate • 114,000 tpa copper and 117,000 ozpa gold • low operating costs and a 24 year mine life • potential to use Prominent Hill concentrator • base case demonstrates ore exported via Port Adelaide - closer ports to be investigated • next stage – feasibility study and development of exploration decline Ore reserve: 270Mt at 0.9 %Cu, 0.4 g/t Au, 4.5 g/t Ag = 2.5Mt Copper, 3.5Moz Gold & 39Moz Silver Government of South Australia PACE co-funded discovery in 2005 12
Arrium Mining – Iron Ore • South Australia - birthplace of Australia’s iron ore production and is country’s second largest producer • Arrium leads South Australian production; stepping up production from 3 mtpa a decade ago to 11.6 mtpa in 2013/14 • Export capacity boosted with expanded port capacity at Whyalla complete with rail-loops - delivered on time and on budget • Expansion continues through Middleback Ranges - Government case managers and regulators working closely in Iron Knob area Source: Photographs by Sean Kelly, courtesy of Arrium Mining 13
Central Eyre Iron Project (CEIP) 14
Central Eyre Iron Project (CEIP) 15
Nyrstar Port Pirie Smelter Transformation Advanced metal recovery and refining facility 3-D snapshot of Redevelopment on completion Change due to Redevelopment process Lead Refinery Precious Metals Refinery Closed end of July. Zinc Sinter Plant Oxygen Enriched oxide transferred to Bath Smelting Hobart from August Furnace Blast Furnace 2014 onwards Zinc Plant Slag Fuming Plant New Acid Plant Copper Plant Source: Courtesy of Nyrstar 16
Government Initiatives • Creation of new Department of State Development • Premier’s Economic Priority 1 – Unlocking the full potential of South Australia’s resources, energy and renewable assets • The Regional Mining and Infrastructure Plan & Resources Infrastructure Taskforce (RIT) within the Olympic Dam Taskforce • Nyrstar Pt Pirie Smelter Transformation – Govt. guarantee to underpin the $514 million investment • PACE 2020 – further $4 m to launch PACE Frontiers • New Core Library underway at Tonsley • Mining and Petroleum Services Centre of Excellence ... 17
Recommend
More recommend
