2015 broken hill resources investment symposium - south australian department for state development...
TRANSCRIPT
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 – 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
Minerals and Petroleum Production 2013-‐14 -‐ $7.5 billion ($5.6billion – Minerals and $1.9billion – Petroleum)
RECORD PRODUCTION
11 Department of State Development
• 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.
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
22 Department of State Development
• 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:
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COSTS EXPLORATION INNOVATION LINKS
Copper Summit– Achieving 1 million tonnes
25 Department of State Development
Chile Peru
USA
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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
27 Department of State Development
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
Department of State Development
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
Department of State Development
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.
SARIG delivery of Open Data
39 Department of State Development
“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
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
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Port Pirie – Nystar Smelter Transformation 2015
Department of State Development
• 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 $85m
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Port Pirie – Nystar Smelter Transformation 2015
Department of State Development
• A$ 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
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Broken Hill – Birthplace of our Industrial Nation
Department of State Development Broken Hill – Propriety Mine 1888
move SA Border to this side
www.statedevelopment.sa.gov.au
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