MINERALS AND ENERGY -...
Transcript of MINERALS AND ENERGY -...
631australiancommodities • vol. 11 no. 4 • december quarter 2004
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MINERALS AND ENERGYmajor development projectsIan Haine and commodity analysts, Commodity Forecasting Group
• Current investment intentions in the Aus-tralian mineral resources sector, as refl ected in the record number and value of minerals and energy projects committed to or under construction, bode well for the sector’s growth over the next few years.
• Despite the existence of a number of proj-ects at less advanced planning stages that are under active consideration for development, a return to higher levels of exploration expen-diture may be necessary to secure a suffi cient resource base to enable continued sectoral growth over the longer term.
Exploration expenditureIt is important to recognise that the ability of Australia’s minerals and energy sector to sustain its strong recent growth and expand its contri-bution to national economic performance in the medium and longer terms depends critically on the amount of investment in minerals explora-tion. Most of the strong growth in the minerals and energy sector of recent years, and most of the expected growth implicit in ABARE’s list of planned projects, is underpinned by minerals exploration expenditure of the past decade.
Australian minerals exploration expenditure, in real terms (2003-04 dollars), for the period 1980-81 to 2003-04 is shown in fi gure A.
In 2003-04, total Australian minerals explo-ration expenditure was virtually unchanged from that in 2002-03, at $1.73 billion. This outcome follows a rise of 13 per cent in 2002-
03. In real terms, expenditure in 2003-04 was 17 per cent below the average annual expenditure on minerals exploration in the past 23 years. All commodity categories in 2003-04 recorded expenditure below their 23 year averages. While the substantial number of minerals and energy projects in this latest list will ensure continued robust growth in the mineral resources sector’s productive capacity over the medium term, a return to higher levels of exploration expenditure may be necessary to secure a suffi cient resource base to enable continued sectoral growth over the longer term.
Of the minerals exploration expenditure in 2003-04, petroleum expenditure declined but expenditure for both gold and base metals increased.
Petroleum exploration expenditure fell by 5 per cent in 2003-04, to around $944 million. This
1983-84
1988-89
2003-04
1993-94
1998-99
$b
1.0
1.5
2.0
0.5
2.5
3.0
3.5
A Australian private minerals exploration expenditure In 2003-04 dollars
OtherBase metalsGoldOther energyPetroleum
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is lower than the annual average expenditure in real terms over the past decade ($978 million).
The fall in petroleum exploration expendi-ture in 2003-04 came despite a signifi cant rise in world oil prices during the year. This outcome can be partly explained by the strength of the Australian dollar in 2003-04. While US dollar world oil prices (in world trade weighted average price terms) rose by 11 per cent in 2003-04, the Australian dollar rose by 22 per cent against the US dollar over the same period, resulting in an effective 11 per cent fall in Australian dollar oil prices.
However, short term prices are but one factor in determining exploration expenditure in any particular period. Other factors such as a longer
term view of oil prices, Australia’s relative prospectivity, the need for long term planning, particularly for relatively expensive offshore petroleum exploration, and the concurrent commitment of resources (funds, equipment and labor) to other activities such as project develop-ment are also expected to have had a signifi cant bearing on exploration expenditure decisions.
Expenditure on gold exploration rose by 5 per cent in 2003-04, following a rise of 14 per cent in 2002-03. The increase in 2003-04 occurred despite a small decline in Australian dollar denominated gold prices in that year and is likely to partly refl ect industry expectations of stronger prices going forward. At around $397 million in 2003-04, gold exploration expenditure was the
The full listABARE’s listings of major minerals and energy projects expected to be developed over the medium term are compiled every six months. Information contained in the lists spans the mineral resources sector and includes energy and minerals commodi-ties projects and minerals processing projects. The information comes predominantly from publicly available sources but, in some cases, is supple-mented by information direct from companies. The lists are fully updated to refl ect developments in the previous six months.
What’s in the listThe latest projects list contains information on 207 projects. Details listed against each project include:• project name• proponent company or joint venture• location• project status• expected startup date• additional output capacity• capital cost of the project• additional employment, where available.
With one industry exception, ABARE’s listing provides details of announced projects for which total capital expenditure is expected to exceed $40 million. The exception is the gold industry,
which typically has a relatively large number of smaller projects. For gold, the expenditure threshold for inclusion in the table is $15 million.
In general, projects identifi ed are at relatively advanced stages of planning. That is, for new projects, stage of planning categories range from
‘feasibility study underway’ through to ‘under construction’.
Projects are listed by the principal mineral commodity to be produced, under the broad head-ings: ‘Mining projects – energy’, ‘Mining projects
– minerals’ and ‘Minerals processing facilities’. The table includes new greenfi elds projects as well as expansions of existing projects.
Where to get the listUp to December 2001, the lists were released in conjunction with each June and December issue of Australian Commodities. Since June 2002, the complete lists (around 12–14 pages) have been released separately. Commencing in 2003, the lists have been released around May and October each year. The lists are available only as an electronic product.
The list can be purchased from ABARE at:
www.abareonlineshop.com enquiries: [email protected] or phone +61 2 6272 2010.
ABARE’s list of major minerals and energy development projects
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highest in three years, in real terms, but less than half the level of seven years ago. In 2003-04, gold exploration expenditure accounted for 57 per cent of total nonenergy exploration expen-diture.
Base metals exploration expenditure rose by 7 per cent to $152 million in 2003-04. The increase is attributable to a strong rise in expen-diture on nickel offsetting falls in expenditure on copper and zinc–lead–silver. The increase in expenditure on nickel exploration refl ects the dramatic rise in global nickel prices, particularly in the fi rst half of 2003-04 and, importantly, a reasonably positive outlook for Australian dollar denominated nickel prices in the next year or so.
Despite the rise in expenditure on base metals in 2003-04, expenditure in that year is the fi fth lowest, in real terms, on record.
Apart from the main exploration sectors referred to above, two other commodities (iron ore and uranium) showed signifi cant expendi-ture increases in 2003-04. Spending on iron ore rose by 43 per cent to $64 million, refl ecting a positive outlook for Chinese demand for this commodity. Uranium expenditure rose by 52 per cent, stimulated by signifi cant rises in world spot prices in the past year.
Over the medium term, exploration expendi-ture in each of the main exploration sectors is expected to be infl uenced by a different set of factors.
In the petroleum sector, Australia’s prospec-tivity for crude oil together with the long term outlook for global oil prices will be key factors in determining future levels of exploration activity and expenditure. For gold, factors such as the US dollar/Australian dollar exchange rate and movements in global equities markets and their infl uence on the outlook for gold prices will be important.
In the base metals sector, the price outlook will clearly be important, as demonstrated by the recent rise in nickel exploration expenditure. While world prices for copper, lead and zinc are expected to fall in 2005, prices are still expected to be signifi cantly stronger than in 2002 and 2003 and may provide some impetus for explora-tion expenditure increases, although expenditure
decisions may also be affected by movements in the US dollar/Australian dollar exchange rate. Other important factors are expected to be: the apparent trend toward company rationalisation of exploration capacities (not only in Australia but globally); expectations of the future strength (or otherwise) of Chinese demand for base metals; assessments of the development poten-tial of several known (but as yet undeveloped) base metals deposits in Australia; and Australia’s relative attractiveness for exploration.
Capital expenditureData from the ABS surveys of new capital expenditure in the mining and metal products industries give an indication, in aggregate terms, of the pace and scale of development in the minerals and energy sector, both historically and in the short term.
ABS survey data show that new capital expen-diture in the mining industry was $9.28 billion in 2003-04, 6 per cent higher than in 2002-03. In real (2003-04 dollar) terms, new capital expen-diture in 2003-04 was the highest since 1998-99 (fi gure B) and around 26 per cent above the average annual expenditure for the past 23 years.
There are good indications that capital expen-diture on mining will remain strong in 2004-05. Based on industry intentions canvassed in the September quarter 2004, ABS data indicate
New capital expenditure In 2003-04 dollars
2004-05
2000-01
1992-93
1996-97
1984-85
1980-81
1988-89
2
$b
4
6
8
10
12
14 Metal productsMining
B
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that capital expenditure on mining in 2004-05 may increase again to be around $9.9 billion. The scale of this expenditure and its order of increase are consistent with the development trends shown in the full list of major minerals and energy projects (see fi gure H).
Capital expenditure in the metal products sector, which includes the minerals processing activities covered in ABARE’s projects list, was $2.70 billion in 2003-04, 25 per cent above expenditure in 2002-03. Surveyed industry intentions suggest that metal products expendi-ture could rise by a further 5 per cent in 2004-05 to around $2.85 billion. In real terms, estimated expenditure in 2004-05 would be about 32 per cent above the 23 year annual average of $2.11 billion (in 2003-04 dollars).
If the expenditure intentions for both the mining and metal products sectors are realised, total capital expenditure in the mineral resources sector could rise by around 4 per cent in real terms, in 2004-05.
Looking beyond the short term, there is some evidence to suggest that there is potential for
further growth in resource sector capital invest-ment. This assessment is based on the observation that there are a signifi cant number of advanced projects in ABARE’s projects list (particularly a number of high cost petroleum developments), and that there now exists a number of large scale, but less advanced projects, that may be devel-oped in a longer timeframe.
Recently commissioned projectsIn the six months ended October 2004, 9 major minerals and energy projects with a combined capital expenditure of $3.33 billion, were completed. Summary details of these are shown in table 1.
The project completion rate in the six month period to the end of October 2004 was lower than the completion rate in the previous six month period (thirteen projects completed in the six months to April 2004) but is around the average completion rate of the past six years (table 2, fi gure C). However, the average value of proj-ects completed in the period to October 2004
1 Major mineral resource developments – projects completed, May to October 2004
Capital Commodity Project Location Company expenditure
$m Mining – energy projectsBlack coal Ashton opencut New South Wales White Industries / Itochu 110
Dartbrook extension New South Wales Anglo Coal Australia 55
Tahmoor North longwall New South Wales Austral Coal 135
Petroleum N Queensland gas pipeline Queensland Enertrade 150
NW Shelf fourth LNG train Western Australia Woodside 2 500
Mining – minerals projectsCopper Northparkes expansion (lift 2) New South Wales Rio Tinto 155
Gold Frog’s Leg opencut Western Australia Dioro / Mines & Resources 13
Lead–zinc–silver Cannington Growth project Queensland BHP Billiton 150
Nickel Sally Malay Western Australia Sally Malay Mining 60
Total capital expenditure 3 328
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($370 million, in nominal terms) is well above the average value in the past six years ($232 million). Looking ahead, ABARE’s project list indicates that the rate of project completions is likely to accelerate, with around fi fteen major projects scheduled for completion in the fi nal two months of 2004 alone.
Of the major projects completed in the six months ended October 2004, the largest in terms of capital cost was the Woodside led North West Shelf Consortium’s fourth LNG train on the Burrup Peninsula in Western Australia. The project was developed at a capital cost of $2.5 billion (including the second gas trunkline) and, at full capacity, will produce 4.2 million tonnes a year of LNG for export. The completion of the fourth train brings the total LNG produc-tion capacity of the North West Shelf project to around 12 million tonnes a year. From 2006, around 3 million tonnes a year of LNG from this development is earmarked for export to China’s Guandong province, where a receiving terminal is currently under construction.
One other petroleum project — Enertrade’s $150 million North Queensland gas pipeline —was completed in the six months to October. The pipeline will transport up to 20 petajoules a year of coal seam methane gas from Moranbah to Townsville when CH4/BHP Billiton’s Moranbah Gas Project development is completed in early 2005.
Three coal projects, all in New South Wales, were completed in the six months to October. The largest in terms of capital cost was Austral Coal’s $135 million Tahmoor North under-ground longwall development near Wollongong. At full production, the longwall will produce 1.6 million tonnes a year of coking coal. The other two completed developments — White Indus-tries’ $110 million Ashton opencut (coking and thermal coal) and Anglo Coal Australia’s $55 million Dartbrook extension (thermal coal) — are both in the Hunter Valley.
Two of the three base metals mine develop-ments completed in the six months to October 2004 are designed to maintain output capacity that would otherwise fall. Rio Tinto’s $155 million Lift 2 development at the Northparkes copper mine near Parkes in New South Wales is a replacement for the original Lift 1 block cave operation, now depleted. Similarly, BHP Billi-ton’s $150 million Cannington Growth Project provided access to new ore sources to enable current output at its namesake silver–lead–zinc mine in Queensland to be maintained. In
2 Completed projects, June 1998 to October 2004
Capital cost of projects Number of projects Total Average
no. $m $mSix months endedJune 1998 3 415 138December 1998 18 3 500 194June 1999 19 6 500 342December 1999 16 4 300 269June 2000 9 1 800 200December 2000 9 1 700 189June 2001 5 282 56December 2001 5 262 52June 2002 10 1 082 108December 2002 10 2 110 211
Four months endedApril 2003 4 400 100
Six months endedOctober 2003 6 937 156April 2004 13 4 956 381October 2004 9 3 328 370
Total 136 31 572 232
Completed projects
1998J D J D
2000J D J D
2002 2003 2004J D Apr AprOct Oct
$b
2
4
6
Total capital cost of projects Average capital
cost of projects
C
$m
100
200
300
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contrast, Sally Malay Mining’s new Sally Malay nickel mine in the East Kimberley region of Western Australia, developed at a capital cost of $60 million, will add 8000 tonnes a year of new nickel mine capacity.
One smaller development — Dioro Explora-tion/Mines and Resources’ Frog’s Leg opencut gold mine — was also commissioned in the six months to October.
(Having come on stream, the above projects no longer appear in ABARE’s projects list.)
Minerals and energy projects
Advanced projectsAt the end of October 2004, there were 73 proj-ects at advanced stages of development included in ABARE’s projects list — that is, projects that are either committed or under construction. The announced capital expenditure of these 73 advanced projects sums to $24.3 billion (table 3).
However, it should be borne in mind that even projects which have reached the committed stage may be deferred, modifi ed or even cancelled if economic or competitive circumstances change suffi ciently.
The 73 advanced projects as at October 2004 indicate continued expansion across most of the minerals and energy industry spectrum. However, in terms of capital expenditure, there is a slight weighting toward petroleum and coal projects.
Proposed energy developments account for 41 per cent (30) of the 73 advanced projects but account for 44 per cent (or $10.7 billion) of the estimated capital cost of $24.3 billion for all advanced projects (table 3). Three large petroleum developments comprise over half of the total value of energy projects. The largest of these is ConocoPhillips’ $3 billion, 3.5 million tonnes a year capacity Darwin LNG plant, scheduled to be completed in 2006, which will use ‘recycled’ Bayu/Undan gas as feed. The recycled gas is natural gas that has been stripped of its liquids (condensate and LPG) during the fi rst phase of the Bayu/Undan project (the ‘gas recycle’ project, completed in March this year) and reinjected into the reservoir. The two other major petroleum projects are both Woodside operated — the Enfi eld oilfi eld scheduled to be developed by 2006 at a capital cost of $1.48 billion; and the $1.1 billion Otway Gas project in offshore Victoria, aiming for completion in mid-2006. The fi fteen coal projects listed have a combined capital cost of $2.8 billion.
In the past six months there has been a further increase in the number and value of minerals mining projects currently committed. At the end of October 2004, there were 33 advanced minerals mining projects valued at $8.3 billion, compared with 30 projects valued at $6.9 billion at the end of April 2004 and 22 projects valued at $3.8 billion at the end of October 2003.
Four large projects, all in Western Australia, make up almost 60 per cent of the total value of
3 Committed projects, October 2004 — number and estimated capital cost, by state
Minerals Energy projects Mining projects processing Total
Number Cost Number Cost Number Cost Number Cost
no. $m no. $m no. $m no. $m
New South Wales 6 1 129 3 579 3 348 12 2 056 Victoria 5 1 689 5 654 0 0 10 2 343 Queensland 12 2 118 6 532 3 2 050 21 4 700 Western Australia 5 2 354 19 6 490 3 1 076 27 9 920 South Australia 0 0 0 0 0 0 0 0 Tasmania 1 450 0 0 0 0 1 450 Northern Territory 1 3 000 0 0 1 1 860 2 4 860
Australia 30 10 740 33 8 255 10 5 334 73 24 329
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advanced minerals mining projects — Newcrest’s $1.2 billion Telfer gold mine redevelopment, expected to be completed by the end of 2004; BHP Billiton’s $820 million Rapid Growth (iron ore) Project 2, with an expected startup of mid-2006; Rio Tinto’s $1.25 billion Yandicoogina iron ore mine expansion, scheduled for comple-tion in 2005; and BHP Billiton’s $1.5 billion greenfi elds Ravensthorpe nickel mine, expected to be commissioned in 2007. For iron ore and nickel, the impetus for development has come mainly from China’s burgeoning demand for materials to meet its steel making requirements.
At the end of October 2004, there were ten advanced minerals processing projects, two
more than the eight committed at the end of April 2004. Four alumina projects together contribute almost 80 per cent of the total of $5.3 billion in capital expenditure for advanced minerals processing projects at the end of October 2004. The most recently committed alumina project, and the largest in terms of capital cost, is Alcan’s $1.86 billion refi nery expansion at Gove in the Northern Territory. The expansion is expected to add 1.7 million tonnes a year to Australia’s alumina capacity following commissioning in 2007. Comalco’s $1.5 billion Comalco Alu-mina Refi nery project at Gladstone is almost completed and is expected to be commissioned at the end of 2004, with fi rst exports scheduled
Advanced minerals and energy projectsOctober 2004 $0 –100m
$101–500m$501–1000m
>$1000m
Capital expenditure
Processing facility
Mine/platform
D
Hobart
Brisbane
Canberra
Perth
Sydney
Darwin
Melbourne
Zinc ferrite plant (zinc)
Mt Garnet (zinc)Mutineer/Exeter (oil)
Darwin LNG plant
Lytton refinery (petroleum)
Kurnell refinery (petroleum)
Weipa (bauxite)
John Brookes (gas)
Burrup Fertilisers (ammonia plant)
Ellendale (diamonds)
Ulan (coal)
Camden (gas)
Dendrobium (coal)
Cracow (gold)
Whim Creek (copper)
Nifty (copper)
Tritton (copper)
Gincko (mineral sands)
Douglas (mineral sands)
Broadmeadow (coal)Hail Creek (coal)
Minerva (coal)Grasstrees (coal)
Curragh North (coal)Rolleston (coal)
Eaglefield (coal)
BMA coal expansion
Blackwater (coal handling and processing)
Comalco refinery (alumina)
Alcan refinery expansion (alumina)
Yabulu refinery (nickel)
Telfer (gold)
Mandalong(coal)
Port Kembla hot strip mill (steel)
HIsmelt(pig iron)
Kwinana refinery (diesel)
Worsley refinery (alumina)
Pinjarra refinery (alumina)
Yandicoogina (iron ore)
Rapid growth project (iron ore)
West Angelas (iron ore)
Mining Area C (iron ore)
Ravensthorpe (nickel)
Yallourn (coal)Minerva (gas)
BassGas (gas)
Casino (gas)
Otway (gas)
Tomago (aluminium)
Kurri Kurri (aluminium)
Northern 3500 orebody (copper)
Black Star (lead/zinc)
Moranbah (gas)
Telfer gas pipeline
Maggie Hays (nickel)
Perseverence (nickel)
Charters Towers (gold)
Altona refinery (petroleum)
Adelaide
Daisy Milano (gold)
St Ives (gold)
Stawell (gold)
Cowal (gold)
New Bendigo (gold)Ballarat East (gold)
Fosterville (gold)
Sunrise Dam (gold)
Magellan (lead)
Paulsens (gold)
Enfield (oil)
Roma to Brisbane gas pipeline
Ashton (coal)Mt Gibson (iron ore)
Koolyanobbing (iron ore)
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for early 2005. The remaining two alumina pro-jects are expansions at Alcoa’s Pinjarra refi nery and BHP Billiton’s Worsley refi nery, both in Western Australia.
Figure D shows the location of advanced pro-jects, while fi gure E provides the breakdown of proposed capital expenditure, by major com-modity grouping. Figure F shows the estimated total capital cost on a state basis.
The number of advanced projects now sched-uled to be completed within the next fi ve years (73) is a record, being eleven more than the number recorded in April 2004 (fi gure G). In addition, the total value of advanced projects in October 2004 (in 2004 dollars) is also a record (fi gure H).
However, the real average value of advanced projects at the end of October 2004 ($333 million) is 5 per cent less than the average for all years since 1995 ($352 million) (fi gure I).
Less advanced projectsProjects in the less advanced planning category are either still undergoing feasibility study (in some selected cases, prefeasibility study), or no defi nite decision has been taken on develop-ment following the completion of a feasibility study. Some of these projects cannot proceed for several years and may confront changed economic or competitive conditions, or may be targeting the same emerging market opportunity, necessitating rescheduling. In addition, securing
Value of committed projects by commodity, October 2004
Petroleum 33%
Coal 11%Alumina 17%
Gold 10%
Nickel 7%
Iron ore 10%
Other 12%
$24.3 billion
E Number of committed projects
19981996 2000 June Dec Apr Apr OctOct
0
10
20
30
40
50
60
2002 2003 2004
G Minerals processing
Minerals
Energy
Value of committed projects by state, October 2004
New South Wales 8%
Victoria 10%
Queensland 19%
Western Australia 41%
Tasmania 2%
Northern Territory 20%
$24.3 billion
F Value of committed projects In 2004 dollars
$b
5
10
15
20
19981996 2000 2002 2004
H Minerals processing
Minerals
Energy
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fi nance for project development — even for high quality projects that have a high probability of success — can present problems, particularly in periods when there is perceived to be excess global supply and/or an uncertain demand outlook.
However, despite the uncertainty which attaches to projects at these earlier stages of consideration, they provide a useful indication of the nature and extent of the platform for future development of the Australian minerals and energy sector.
Of the 207 projects in total (a record) in the list, two-thirds (134 projects) remain uncom-mitted. Table 4 contains a summary of the
Average value of committed projects In 2004 dollars
$m
200
100
300
400
19981996 2000 2002 2004
I
4 Number of less advanced projects, October 2004
Potential capital NSW Vic Qld WA SA Tas NT Aust expend
no. no. no. no. no. no. no. no. $m
Mining – energy projectsBlack coal 10 0 13 0 0 0 0 23 4 374Petroleum 0 2 2 8 0 0 3 15 37 261 Uranium 0 0 0 0 1 0 0 1 30
Subtotal 10 2 15 8 1 0 3 39 41 665
Mining – minerals projects Cobalt 0 0 0 0 0 0 2 2 naCopper 0 0 5 2 2 0 0 9 3 540Gold 2 0 0 8 1 0 2 13 1 072Iron ore 0 0 0 8 0 0 0 8 6 673Lead–zinc–silver 3 0 2 1 0 1 1 8 1 177Mineral sands 3 3 1 3 1 0 0 11 633Nickel 0 0 1 9 0 1 0 11 3 943Rare earths 0 0 0 2 0 0 0 2 121Tantalum 0 0 0 1 0 0 0 1 naOther commodities 1 0 3 8 0 0 0 12 2 745
Subtotal 9 3 12 42 4 2 5 77 19 904
Minerals processing Alumina 0 0 2 1 0 0 0 3 1 500Aluminium 3 0 2 0 0 0 0 5 4 800Copper 0 0 1 0 0 0 0 1 29Crude iron and steel 2 0 1 0 0 0 0 3 1 450Magnesium 1 1 0 0 0 1 0 3 2 465Titanium minerals 1 0 0 2 0 0 0 3 720
Subtotal 7 1 6 3 0 1 0 18 10 964
Total 26 6 33 53 5 3 8 134 72 533
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numbers and commodity distribution of the 134 uncommitted projects together with their poten-tial capital expenditure. These expenditure data should be used as a rough guide only. This is for two main reasons: fi rst, many of the proj-ects included under the one commodity heading are effectively competing with one another and in most cases market conditions will preclude some from proceeding, at least in the timeframe specifi ed; and, second, capital expenditure data for many early stage projects are either not yet available or, if available, will change signifi -cantly if they do proceed to development.
However, most of the projects that will ulti-mately proceed to development in the medium term are included in ABARE’s current list of 134 less advanced projects.
Some of the more notable large scale proj-ects in ABARE’s October 2004 list that are still undergoing feasibility studies include: Chevron Texaco’s proposed $11 billion Gorgon LNG development on Barrow Island; Exxon Mobil/Oil Search’s longstanding $2.1 billion PNG to Queensland gas pipeline proposal that has now progressed to the FEED (front end engineering
and design) stage; WMC Resources’ proposal to further expand its Olympic Dam copper/uranium mine, to more than double its current output capacity, at a capital cost of $2–4 billion; and Fortescue Metal Group’s Pilbara iron ore and Pilbara infrastructure projects with a combined capital expenditure of $1.85 billion.
Projects new to ABARE’s listThere are 32 signifi cant projects at less advanced planning stages that are new to ABARE’s list since April 2004. In the previous six month period (to April 2004) there were 33 projects new to the list. The number of newly listed projects in this twelve month period (65) is high compared with earlier periods and is one indication of renewed investment interest in the mineral resources sector. Figure J provides a summary of numbers of newly listed projects in the six months ended October 2004 by commodity category.
One of the more signifi cant projects new to the list is BHP Billiton’s proposed $4 billion Pilbara LNG plant near Onslow, Western Australia. The plant would use gas from the Scarborough fi eld on the North West Shelf. The Scarborough fi eld would be developed as part of the overall project. The Pilbara LNG project is one of fi ve, as yet uncommitted, LNG proposals in the proj-ects list that are being considered for develop-ment. The others are the Gorgon project and the North West Shelf fi fth train, both on the North West Shelf, and the Sunrise and the Tassie Shoal projects, both in the Timor Sea. If all fi ve were to proceed, annual LNG capacity would increase by 28 million tonnes. The capital cost of these developments would be around $24 billion. Commitment to these projects is expected to partly depend on securing access to markets in Asia and the United States in an increasingly competitive market environment.
Projects added to listSix months to October 2004 Total = 32
0 2 4 6 8 10
Other
Nickel
Iron ore
Gold
Petroleum
Copper
Coal
J
ABARE's list of major minerals and energy projects: October 2004
Note: Projects that are under construction or committed are shown in the blue shaded areas. Less advancedprojects are shown in the yellow shaded areas.
Mining projects – energy aExpected New Capital Employ-
Project Company b Location Status c startup capacity d expend. e ment fBlack coalNew South Wales mines
Ashton White 12 km NW New project, 2005 3 Mt $90m 200 Cunderground Industries/ of Singleton under construction coking and 140 O
Itochu thermal
Dendrobium BHP Billiton Kemira New project, mid-2005 2.6 Mt coking US$200m 170 Ounderground Valley, W of under construction 1.0 Mt thermal (A$285m)
Wollongong (salable coal)
Mandalong Centennial 35 km SW Expansion, early 2005 3.5–4.5 Mt $219m 180 Cunderground Coal of Newcastle under construction thermal 150 O
longwall
Ulan longwall Xstrata/ 45 km NW of Expansion, late 2005 2 Mt $90m na(replacement for Mitsubishi Mudgee committed thermal
opencut) Development
Airly Centennial 42 km NW New project, na 1.0 Mt $12m 80–100 CMountain Coal of Lithgow feasibility study thermal 40 O
underground completed
Anvil Hill Centennial 20 km SW of New project, 2008 9 Mt $50m 199 Oopencut Coal Muswell- feasibility study thermal
brook stage. EISunder way
Glendell Xstrata 17 km NW New project, na 3.6 Mt $123m 85 Oopencut of Singleton feasibility study coking and
completed. thermalOn hold
Maules Coal and 20 km NE New project, na 6.5 Mt $450m 300 OCreek Allied of Boggabri mining lease thermal
opencut (Rio Tinto) granted. On holdover medium
term
Mt Pleasant Coal and 5 km W of New project, 2005-06 7 Mt $310m 250 Copencut Allied Muswell- development thermal 330 O
(Rio Tinto) brook consent and PCI coalgranted
Saddler's Creek Anglo Coal 15 km SW of New project, na 4 Mt $128m 205 Ounderground and Australia Muswell- prefeasibility thermal
opencut brook study andunder way coking
Wambo Excel Coal/ 16 km W of Expansion, late 2004 Phase 1: 3.3 Mt $280m 370 Oopencut and Sumitomo Singleton development (phase 1) Phase 2: 4.7 Mtunderground consent thermal
granted andcoking
Werris Creek Whitehaven 4 km S of New project, mid-2005 1.6 Mt na 50 Oopencut Coal Werris Creek development
application submitted
Wilpinjong Excel Coal 40 km NE of New project, 2006 5 Mt $156m naopencout Mudgee feasibility study thermal
under way
Wyong BHP Billiton NW of Wyong New project, na 3.5 Mt $300m 250 Ounderground feasibility study thermal
longwall under way
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Black coalQueensland mines
Blackwater coal BHP Billiton Blackwater, W New project, late 2005 Nil (efficiency US$180m 400 Chandling and Mitsubishi of Rockhampton under construction measure) (A$257m)
processing facility Alliance (BMA)
BMA coal BHP Billiton (several Expansion mid-2005 5 Mt $US$94m naexpansion Mitsubishi locations) (debottlenecking) coking (A$134m)
project Alliance (BMA) feasibility study(stage 1) under way
BMA coal BHP Billiton (several Expansion mid-2006 2 Mt $US$175m naexpansion Mitsubishi locations) (debottlenecking) coking (A$250m)
project Alliance (BMA) feasibility study(stage 2) under way
Broadmeadow BHP Billiton near New project, mid-2005 3.6 Mt $102m 90 Ounderground Mitsubishi Moranbah under construction hard coking
longwall Alliance (BMA)
Curragh Wesfarmers 200 km W of Expansion, mid-2005 1.5 Mt $290m 200 CNorth Rockhampton under construction coking and 130 O
thermal
Eaglefield Peabody 30 km N of New project, na 1 Mt $195m naopencut Energy Moranbah committed hard coking
Grasstree Anglo Coal German New project, 2007 4 Mt $250m 200 Ounderground Australia Creek under construction hard coking
longwall area
Hail Creek Rio Tinto/ 80 km WSW of Expansion, 2007 2.5 Mt $120m naNippon Steel/ Mackay committed coking
Marubeni/Sumisho
Minerva Felix Resources/ 45 km S of New project, 2006 2.5 Mt PCI $68m naopencut Sojitz Emerald committed and thermal
Rolleston Xstrata/ 100 km S of New project, late 2005 8 Mt by $291m 200 Copencut Sumitomo/ Emerald under construction 2008 143 O
Itochu thermal
Clermont Rio Tinto/ 11 km N of New project, 2008 10 Mt $440m 300 Oopencut Mitsubishi Clermont feasibility study thermal
under way
Dawson Anglo Coal 160 km SW New project, na 5 Mt $300m 200 Oopencut Australia/Mitsui of Rock- mining lease thermal
hampton granted. On holdover medium
term
Grosvenor Anglo Coal 4 km SE of New project, na 5 Mt $500m 250 Ounderground Australia Moranbah prefeasibility study hard coking
completed
Kogan Creek C S Energy 40 km NW of New project, 2006 2.8 Mt $80m 60 Oopencut Dalby feasibility study thermal
completed
Lake Lyndsay Anglo Coal near German New project, 2006 4 Mt $60m naopencut Australia/Mitsui Creek, feasibility study coking and PCI
central Qld under way
Millenium Coal Excel Coal/ 20 km E of New project, 2005 2.5 Mt $60m naproject Millenium Moranbah feasibility study coking and PCI
under way
Monto coal Macarthur 120 km S of New project, na 1 Mt $35m namine (stage 1) Coal Gladstone under review thermal
Moura mine Anglo Coal 120 km SW of Expansion, na 2 Mt $140m nilexpansion Australia/Mitsui Rockhampton feasibility study
under way
Suttor Creek Xstrata/ 13 km W of New project, 2007 3 Mt $40m na(replacement for Itochu Glenden mothballed thermal
Newlands)
Theodore Anglo Coal 140 km SW of New project, na 6.2 Mt $240m 280 Oopencut Australia Rockhampton mining lease thermal
granted
Togara Xstrata 45 km SW of New project, na 4.0–5.0 Mt $350m 200 ONorth Blackwater feasibility study
longwall under way
Vermont Bowen Basin 15 km NE of New project, na 2.5 Mt $70m naopencut Coal Dysart environmental coking and PCI
impact studyunder way
Wandoan Xstrata 60 km N New project, 2006 3 Mt initially, $250m 400 Copencut of Miles prefeasibility up to 10 Mt 200 O
stage by 2011
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Brown coalVictoria
Yallourn Coalfield Yallourn Latrobe New project, 2005 na $150m 150 CDevelopment Energy Valley under construction 250 O
Project
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
PetroleumAltona refinery Exxon Mobil Altona, Redevelopment, 2006 nil na na
upgrade Vic committed
BassGas project Origin/Australia Bass Strait, New project, late 2004 20 PJ pa natural $450m 200 C(Yolla gas/LPG/ Worldwide Tas under construction gas; 20 O
condensate Exploration/ 67 ktpa LPG;field) CalEnergy/ 2.5 kbd
Santos/Wandoo condensate
Caltex Clean Caltex Sydney and Redevelopment, 2005 nil $295m 600 CFuels project Brisbane under construction
(Kurnell and Lytton refineries)
Camden Gas Sydney Gas Camden, NSW New project, 2005-06 St 2: 10 PJ pa $150m 65 CProject (coal seam Stage 2 St 3: 4.5 PJ pa
methane) under constructionStages 2&3
Casino Santos/AWE/ 30 km offshore New project, early 2006 35 PJ pa $200m nagas discovery Mitsui Otway Basin, committed (420 PJ over
Vic 12 years)
Darwin LNG plant ConocoPhillips/ Point Wickham, New project, 2006 3.5 Mt LNG $3b 1200 C(based on ENI/Inpex/ near Darwin, NT under construction (includes 100 O
Bayu/Undan gas) Santos/Tokyo pipeline)Gas/TEPCO
Enfield Woodside 50 km N of New project, late 2006 100 kbd $1.48b 100 Coil project Energy/Mitsui Exmouth, committed 80 O
WA
John Brookes Apache Energy/ Offshore New project, mid-2005 20 mcfpd $220m nagas project Santos/Encana/ Carnarvon under construction
Exxon Mobil Basin, WA
Kwinana refinery BP Kwinana, Redevelopment, 2005 nil $60m naclean diesel WA under construction
project
Minerva BHP Otway New project, late 2004 150 TJ per day US$167m 220 Coffshore gas Petroleum/ Basin, Vic under construction gas; 600 bd (A$239m) 20 O
field Santos condensate
Moranbah CH4/ Moranbah, Qld New project, early 2005 13–20 PJ pa $61m nagas project (coal BHP Billiton under constructionseam methane)
Mutineer/Exeter Santos/ 150 km N of New project, mid-2005 100 kbd $480m 540 Coilfield Kufpec/Nippon Dampier, committed 90 O
Oil/Woodside CarnarvonEnergy Basin, WA
Otway Gas Woodside Otway Basin, New project, mid-2006 60 PJ pa $1.1b naproject Energy/Origin/ Vic under construction 800 kbpa
Benaris/ condensateCalEnergy 100 ktpa LPG
Roma to Brisbane AGL Pipelines Roma to New project, 2005 43 PJ pa $100m nagas pipeline Brisbane, Qld under construction
Telfer gas GasNet Port Hedland New project, late 2004 na $114m napipeline Australia to Telfer, WA under construction
Berwyndale South Queensland near Roma, New project, 2005 na $35m 150 Cand Argyle Gas Company Qld feasibility study 15 O
(coal seam methane) under way
Blacktip Woodside/ Offshore New project, 2007 40 PJ pa gas $1b nagas discovery Shell/Agip Bonaparte Basin, feasibility study 1.7 mmbbl(incl pipeline) WA under way condensate
Cliff Head Roc Oil/AWE/ Offshore New project, late 2005 10–20 kbd $156m naoil project Wandoo/ Perth Basin, feasibility
Voyager Energy/ WA study completed.CIECO FEED under way
Dimethyl Ether Japan DME Burrup New project, late 2007 1.7 Mt DME $1.1b 1000 CProject Peninsula, feasibility study 150 O
WA under way. Location under
review
Gas to liquid SASOL/ Barrow New project, 2005-06 30–45 kbd diesel $2.0b 2500 Cfuels plant Chevron JV Island, feasibility study 7.3 kbd naptha (stage 1) 200 O
WA under way and LPG
Gorgon Chevron Barrow New project, 2008 10 Mt LNG $11b 3000 CLNG Texaco/Shell/ Island, feasibility study 300 TJ/day 600 O
ExxonMobil WA under way natural gas
Hazelwood GTL Energy/ Latrobe New project, 2008 10 kbd diesel $500m nabrown coal to International Valley, Vic feasibility study and naptha diesel project Power under way
Liquigaz GTL Resources Burrup New project, 2006 1 Mt $770m 600 Cmethanol Peninsula, feasibility study methanol 85 O
plant WA completed
North West Woodside North West Expansion, 2008 4.2 Mt LNG $1.6b 2000 CShelf project Energy Shelf, WA feasibility study 70 O
extension under way(fifth train)
Pilbara LNG BHP Billiton near Onslow. New project, 2010 6 Mt LNG $4b 2500 Cplant WA pre-feasibility 150 O
(based on studyScarborough gas) under way
PNG–Qld Exxon Mobil/ PNG to Qld New project, 2008 300 PJ pa $2.1b 1500 Cgas pipeline Oil Search feasibility study (Australian 50 O
completed. component)FEED studiescommenced
Sunrise Gas Woodside Timor Sea, New project, 2010 5.3 Mt LNG $5b 1000 CProject Energy/ 500 km feasibility study 100 O
ConocoPhillips/ NW of under way Shell/Osaka Gas Darwin, NT
Tassie Shoal Gastech Systems Timor Sea, New project, 2010 2.5 Mt LNG na naLNG (Methanol 275 km feasibility study
project Australia) NW of under way Darwin, NT
Tassie Shoal Methanol Timor Sea, New project, 2009 3.5 Mt $2b namethanol Australia/ 275 km FEED to methanol
project Air Products NW of commenceand Chemicals Darwin, NT late 2004
Victorian power Australian Latrobe Valley, New project, 2008 52.6 kbd $6b naand liquids Power and Vic feasibility study clean diesel;
project Energy Ltd completed 1060 MWelectricity
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
UraniumHoneymoon Southern 420 km NE New project, na 0.75–1.0 kt $30m na C
Cross of feasibility study U3O8 40 OResources Adelaide, revised. On hold.
SA Mininglease granted
For further information contact: Ian Haine + 61 2 6272 2031
Mining projects – minerals aExpected New Capital Employ-
Project Company b Location Status c startup capacity d expend. e ment fCobalt
Browns Compass near New project, 2006 1 kt Co na naOxide Leach Resources/ Batchelor, feasibility cathode
project Guardian NT study 9.7 kt Cu Resources under way cathode
Browns Compass near New project, 2009 na na naSulphide Resources/ Batchelor, pre-feasibility (cobalt, lead,project Guardian NT study copper, nickel)
Resources under way
For further information contact: Ian Haine + 61 2 6272 2031
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
CopperNifty Aditya Birla Pilbara Expansion, 2005 60 kt Cu $148m 160 C
sulphide Group region, under construction in concen- 90 Oresource WA trates
Northern 3500 Xstrata Mt Isa, Qld Expansion, 2006 21.8 kt Cu $36m naunderground under construction in concen-
orebody trates (240 kt Cu over
11 years)
Tritton Tritton 17 km W of New project, late 2004 24 kt Cu $40m na CResources Girilambone, under construction in concen- 120 O(Straits) NSW trates
Whim Creek Straits 150 km E of New project, late 2004 16 kt Cu $23m 150 CResources Karratha, WA under construction cathode 30 O
Cloncurry Exco Resources near Cloncurry, New project, late 2005 11 kt Cu na nacopper project Qld feasibility study in concen-
nearing trates completion
Lady Annie CopperCo 140 km NNW of New project, na 15 kt Cu $30m naMt Isa, Qld feasibility study cathode
under way
Maroochy- Aditya Birla 60 km S of New project, na 30 kt Cu na nadore Group Telfer, WA feasibility study cathode
under way
Mt Watson Matrix Metals 110 km NW of New project, na 15 kt Cu $40m naCloncurry, Qld feasibility study cathode
about tocommence
Olympic WMC Roxby Expansion, 2009 316 kt Cu $2–4 billion naDam Resources Downs, prefeasibility 7.5 kt U3O8
expansion SA studyunder way
Panorama Sipa Resources 100 km SE of New project, na 73 kt Cu $40–60m nacopper-zinc Pt Hedland, WA review of 226 kt Zn
project feasibility study under way
Prominent Hill Oxiana/Minotaur N of Coober New project, 2008 90 kt Cu $300–400m naPedy, SA prefeasibility in concen-
study trates under way 110 000 oz Au
Roseby copper Universal 60 km NW of New project, 2006-07 40–70 kt Cu $40m naproject Resources Cloncurry, Qld feasibility study in concen-
under way trates, or cathode
20 000–25 000 oz Au
White Range Matrix Metals 35 km S of New project, mid-2005 15 kt Cu $30m naCloncurry, Qld feasibility study cathode
nearing completion
For further information contact: Will Mollard + 61 2 6272 2096
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
GoldBallarat East Ballarat Ballarat, New project, 2006 100 000 oz initially, $65m 180 O
Goldfields Vic under construction 200 000 oz ultimately
Charters Towers Citigold Charters Towers, New project, Progressively 250 000 oz $150m 286 OCorporation Qld under construction to 2007
Cowal Barrick Gold near West New project, early 2006 220 000– $385m 350 CWyalong, under construction 235 000 oz 200 O
NSW
Cracow Newcrest/ near Cracow, New project, late 2004 120 000 oz Au $89m naSedimentary Qld under construction 60 000 oz Ag
Holdings
Daisy-Milano Perilya near Kalgoorlie, New project, late 2004 60 000–70 000 oz na naWA under construction
Fosterville Perseverance near New project, early 2005 110 000 oz $94m 40 CFosterville, under construction
Vic
New Bendigo Bendigo near Bendigo, New project, 2005 83 000 oz average $215m 70 CMining Vic under construction first 3 years; 500 O
600 000 oz ultimately
Paulsens NuStar Mining 180 km W of New project, mid-2005 80 000 oz initially $32m na(Taipan) Paraburdoo, under construction increasing to
WA 135 000 oz
Stawell MPI Mines near Stawell, Expansion, late 2004 30 000 oz $10m naexpansion Vic under construction
(Golden Gift)
St Ives Gold Fields Lake Lefroy Expansion, late 2004 100 000 oz $125m naAustralasia region, WA under construction
Sunrise Dam AngloGold 55 km S of Underground Progress- na $87m naunderground Laverton, development, ively todevelopment WA committed (part of 2007
study into feas of full scale under-
ground dev)
Telfer Newcrest 400 km ESE of Redevelopment, late 2004 800 000 oz Au $1.2b 1222 Credevelopment Port Hedland, under construction 30 kt Cu 620 O
WA
Boddington Newmont/ SE of Pinjarra, Redevelopment, 2007 600 000 oz Au $735m 500 C(Wandoo) Anglogold/ WA feasibility study 22.5 kt Cu 350 O
Newcrest being updated
Bronzewing View Resources 65 km NE of Redevelopment, early 2005 110 000– na naredevelopment Leinster, WA feasibility study 130 000 oz
nearingcompletion
Coyote Tanami Gold NT New project, late 2005 60 000 oz $20m nafeasibility study (minimum initial
nearing output)completion
Frog's Leg Dioro Exploration/ WA New project, 2006 60 000 oz $18m naunderground Mines and feasibility study
Resources Australia nearingcompletion
Gwalia Sons of WA Expansion na 120 000– $125m naDeeps Gwalia underground, 150 000 oz
feasibility studyunder review
Indee Range River near Whim Ck, New project, 2005 50 000 oz $12–15m naGold/Bullion WA feasibility study
Minerals nearingcompletion
Peak Hill Alkane 40 km N of New project, na na na nasulphide Parkes, NSW feasibility study project under review
Sunrise Dam AngloGold WA Expansion, 2007 na $87m naunderground underground
expansion feasibility study under way
Tomingley Alkane 52 km N of New project, late 2006 60 000– $29m 100 C (Wyoming) Parkes, NSW pre-feasibility 65 000 oz 45 Ogold project study ongoing
Tom's Gully Renison 90 km E of New project, early 2005 40 000 oz na naConsolidated Darwin, NT feasibility
Mines study nearingcompletion
Tunkillia Helix Gawler Craton, New project, na 70 000 oz na naResources SA feasibility
study stage.On hold
Wallaby Placer Dome 23 km S of Expansion na na na naunderground extension Laverton, WA underground,
(Granny Smith) feasibility study completed
Westonia Westonia Mines Westonia, Reopening, mid-2005 90 000 oz $43m naWA feasibility
study underreview
For further information contact: Will Mollard + 61 2 6272 2096
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Iron oreKoolyanobbing Portman 50 km NNE of Expansion, late 2005 3 Mt $55m na
expansion Southern Cross, under construction WA
Mining Area C BHP Billiton Pilbara, WA Expansion, end 2004 8 Mt $152m naexpansion under construction (incl port
and rail)
Mt Gibson Mt Gibson Iron 324 km SE of New project, na 1.5 Mt $22m naHematite Geraldton, WA committed.
On hold
BHP Billiton's BHP Billiton Pilbara, WA New project, mid-2006 8 Mt US$575m naRapid Growth committed (incl port (A$820m)
Project 2 (RGP2) and rail)
West Rio Tinto/ Pilbara, Expansion, mid-2005 5 Mt $142m naAngelas Robe River WA under construction
Yandicoogina Rio Tinto Pilbara, WA Expansion, 2005 12 Mt $1.25b namine and under construction (incl port)
Dampier portexpansion
BHP Billiton BHP Billiton Pilbara, Expansion, 2005-06 27–32 Mt na nacapacity expansion WA feasibility study
project under way
Cape Preston Mineralogy Fortescue, WA New project, 2007-08 5 Mt iron ore $1.8b 2000 Cmine and feasibility study concentrates 400 O
pellet plant under way 7 Mt pellets
Hope Hancock Pilbara, New project, 2007-08 25 Mt $1.7b 500 CDowns Prospecting/ WA feasibility study 300 O
Kumba completed
Koolan Island Aztec Resources Koolan Island, New project, 2006 3–4 Mt $50m naWA feasibility study
under way
Koolanooka Midwest 55 km N of New project, 2007 4.5 Mt $540m 1200 Cpellet project Corporation Mullewa, WA feasibility study iron ore pellets 266 O
completed
Pilbara Fortescue Pilbara, New project, 2006-07 na $1.44b naInfrastructure Metals Group WA feasibility
project studyunder way
Pilbara Fortescue Chichester New project, 2006-07 45 Mt $410m naIron Ore Metals Group Ranges, Pilbara, feasibility project WA study
under way
Weld Range Midwest 370 km N of New project, na 10 Mt $733m naCorporation Geraldton, WA pre-feasibility
studyunder way
For further information contact: Simon Richmond + 61 2 6272 2271
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Lead–zinc–silverBlack Star Xstrata Mt Isa, Qld New project, 2005 80 kt Zn $27m na
open pit under construction 80 kt Pb
Magellan Magellan 30 km W of New project, early 2005 Stage 1: 70 kt Pb $36m 120 Clead project Metals Wiluna, under construction in concentrates 100 O
(Stage 1) (Ivernia/ WASentient Global
Resources)
Magellan Magellan 30 km W of New project, 2007 Stage 2: 90 kt Pb $25m nalead project Metals Wiluna, committed metal
(Stage 2) (Ivernia/ WASentient Global
Resources)
Mount Garnet Kagara 105 km SW Expansion, 2005 70–80 kt Zn cons na na expansion Zinc of committed 17 kt Pb cons
(Balcooma, Dry River Cairns, Qld 6 kt Cu consSouth)
Bowden’s Silver 20 km ESE New project, na 4.5 moz Ag $50m 120 Csilver Standard of Mudgee, feasibility study 4.75 kt Pb 80 O
project Australia NSW ongoing 4.5 kt Zn
Broken Hill CBH Resources Broken Hill, New project, na 58 kt Zn $69m naproject NSW pre-feasibility 36 kt Pb
study under way 1 moz Ag
Dugald Zinifex 85 km NE New project, na na $250m naRiver of Mount on hold
Isa, Qld
Hellyer Intec/Ivanhoe 90 km S of New project, na 24 kt Zn $137–153m nametals Mines Burnie, Tas pre-feasibility 93 t Agproject study completed 100 000 oz Au
Jaguar Jabiru Metals 260 km N of New project, 2006 34 kt Zn $43m nabase metals Kalgoorlie, feasibility study 10 kt Cu
WA nearing 1m oz Agcompletion
Lady Lady Loretta 140 km NW New project, na 75 kt Zn $120m naLoretta JV of Mt Isa, feasibility study 25 kt Pb
(Noranda Qld under review 645 000 oz Pacific/Buka Ag
Minerals)
McArthur River Xstrata Boroloola, NT New project, 2008 450 kt Zn $500m nadirect leaching feasibility study
project under way
Potosi Perilya Broken Hill, New project, 2005 na na naNSW feasibility study
under way
For further information contact: Simon Richmond + 61 2 6272 2271
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Mineral sandsDouglas Iluka 40 km SW of New project, late 2005 98 kt rutile $270m 250 C
Resources Horsham, Vic committed 135 kt zircon 150 O200 kt ilmenite10 kt leucoxene
Gingko BeMaX NSW (120 km New project, mid-2006 59 kt rutile $154m 145 C(stage 1 of Resources N of Mildura) committed 41 kt zircon 70 OPooncarie 136 kt ilmenite
mineral sands 110 kt leucoxene project)
Coburn Gunson 250 km N of New project, mid-2006 172 kt ilmenite $62m naResources Geraldton, feasibility study 78 kt Zr
WA nearing 21 kt leucoxenecompletion 14 kt rutile
Dongara Ticor Eneabba, WA New project, 2005 200 kt ilmenite $15–71m nafeasibility study 30 kt rutile
under way 30 kt zircon
Goondicum Monto 30 km E of New project, late 2005 180 kt ilmenite $55m 220 CMinerals Monto, Qld feasibility 70–250 kt feldspar 55 O
study continuing. 50 kt apatitePilot plant
commissioned.
Jangardup BeMaX Jangardup New project, 2005-06 250 kt $40m 100 CSouth Resources South, WA EIS and mineral sands 50 O
feasibility study concentratesunder way
KWR project Iluka near Ouyen, New project, mid-2007 na $150–200m naResources Vic pre-feasibility
studyunder way
Mindarie Southern near Loxton, New project, mid-2005 17 kt rutile $68m naTitanium SA feasibility study 44 kt zircon
completed 77 kt ilmenite15 kt leucoxene
Ouyen BeMaX 15 km NE of New project, na 150–200 kt of $40m naResources Ouyen, Vic EIS and heavy mineral
feasibility study concentratesunder way
Prungle BeMaX NSW (90 km New project, 2010 - 15 45 kt rutile na na(Karra) Resources E of Mildura) feasibility and EIS 30 kt zircon
study under way 120 kt ilmenite
Snapper BeMaX NSW (110 km New project, 2009 na $70m na(stage 2 of Resources N of Mildura) pre-feasibility Pooncarie study completed.
mineral sands ML applic pendingproject)
Twelve Mile BeMaX 210 km SE of New project, na 250 kt of $80m naResources Broken Hill, scoping study heavy mineral
NSW completed; EIS concentratesunder way
WIM 150 zircon/ Southern 35 Km S of New project, na 140 kt zircon na natitanium project Titanium/Austpac Horsham, Vic pre-feasibility
resources studyunder way
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
NickelMaggie Hays LionOre 130 km W of New project, late 2004 4 kt Ni $28m 167 C
Norseman, WA under construction 25 O
Perseverence WMC Leinster, WA Expansion, late 2005 na $200m naunderground Resources under construction
extension
Ravens- QNI 35 km E of New project, 2007 220 kt mixed US$1.05b 1000 Cthorpe (BHP Billiton) Ravens- under construction Ni/Co hydroxide (A$1.5b) 300 O
thorpe, intermediateWA product
(feed for Yabulurefinery)
Avebury Allegiance near Zeehan, New project, 2006 6–7kt Ni $39m naMining Tas feasibility study in concentrates
nearingcompletion
Black Swan MPI Mines near Kalgoorlie, Expansion, 2005 5.5–7.5 kt Ni $55m naopen pit WA feasibility study in concentrates
under way
Forrestania Western Areas 130 km S of New project, 2006 10 kt Ni $70m naSouthern Cross, feasibility study
WA nearingcompletion
Honeymoon Well MPI Mines 37 km SSE of New project, late 2005 8 kt Ni $35m or $55m na(Wedgetail) Wiluna, WA feasibility study
nearingcompletion
Kalgoorlie Heron Resources N of Kalgoorlie, New project, na 50 kt Ni $1.4b nanickel project WA pre-feasibility 3 kt Co
studyunder way
Marlborough Pearce Matheson 70 km NW New project, 2008 124 kt Ni $1.3b na CGroup of Rock- feasibility study 10 kt Co 450 O
hampton, under wayQld
Mt Keith WMC S of Wiluna, Expansion, 2005 22 kt Ni $150m naResources WA feasibility study
completed.Development options
being considered
Mt Keith WMC S of Wiluna, Expansion, 2006 25 kt Ni $550–650m naconcentrator and Resources WA feasibility study
low pressure under wayleach plant
Murrin Murrin Minara 53 km ENE of Expansion, 2007 10 kt Ni $250m naResources Leonora, WA on hold
Sherlock Bay Sherlock Bay near Karratha, New project, 2005 8 kt Ni $34m naNickel Corp WA feasibility study 1.6 kt Cu
completed
Yakabindie WMC S of Wiluna, Expansion, 2009 32 kt Ni na naResources WA pre-feasibility
studyunder way
For further information contact: Simon Richmond + 61 2 6272 2271
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Rare earthsMt Weld Lynas Corp Meenaar and New project, 2006 33 kt concen- $43–50m 100 C
Mt Weld, feasibility study trates containing 35 OWA nearing 40–45% rare
completion earth oxides
Pinjarra Geo Specialty Pinjarra, New project, na 100 t of '4N' $75m 150 Cgallium extraction Chemicals WA deferred gallium metal 50 O
plant indefinitely
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
TantalumMt Deans Tantalum 6 km SW of New project, 2005 100 000 lb $5m 30 C
project Australia Norseman, feasibility study tantalum 15 OWA under way
For further information contact: Ian Haine + 61 2 6272 2031
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Other commoditiesAmmonia plant Burrup Burrup New project, late 2005 760 kt ammonia $645m 500 C
Fertilisers Peninsula, under construction 60 OWA
Weipa bauxite Rio Tinto Weipa, Expansion late 2004 4.5 Mt $230m 250 Cmine expansion Qld and upgrade, 100 O
(NeWeipa project) under construction
Ammonium nitrate Deepak Burrup New project, na 300 kt ammonium $300m naplant Fertilisers Peninsula, feasibility study nitrate
WA under way 270 kt nitric acid150 kt ammonia
Argyle Rio Tinto 130 km SSW of New project, 2007 na na na Cunderground Kununurra, WA feasibility study 400 O
study under way(diamonds)
Calcined petroleum Astral Near Gladstone, New project, na 415 kt calcined $340m 350 Ccoke plant Calcining Qld on hold carbon 80 O
Dampier Nitrogen Dampier Burrup New project, 2005 1.2 Mt urea $900m 1000 Cproject Nitrogen JV Peninsula, feasibility study 100 kt ammonia 130 O
(ammonia/urea) (Plenty River/ WA under wayThiess)
Dubbo Alkane Toongi, New project, na 3.0 kt $91m 300 Czirconia Exploration/ 20 km S of feasibility study zirconia 60 Oproject Astron Dubbo, completed 1.2 kt rare
NSW earths0.6 kt Nb/Ta
Ellendale Kimberley 140 km ESE of Expansion, 2007-08 na $78m nadiamond mine Diamond Derby, WA feasibility study
expansion Company nearingcompletion
Ely bauxite Alcan near Weipa, New project, 2009 na na namining Qld feasibility study project under way
Exmouth Solar Straits near Exmouth, New project, 2008 3 Mt $120m nasalt project Salt WA feasibility study
under way
Manganese HiTec 50 km N of New project, 2006 14 kt $55m nadioxide Energy Kalgoorlie, feasibility study electrolyticproject WA completed Mn dioxide
Pickanjinnie Queensland Pickanjinnie New project, na 360 kt ammonia $800m 500 Cfertiliser Fertiliser Assets near Roma, EIS completed 350 kt urea 150 O
plant Qld 150 kt ammoniumnitrate
130 kt nitric acid
Panton Platinum 60 km N of New project, na 69–95 000 oz $57–64m naplatinum Australia Halls Creek, WA feasibility study PGM’spalladium completed.
project Under review
Swan River Minerals near Tammin, New project, na 250 kt processed na na(Kerrigan) Corporation WA technical kaolin
kaolin project feasibility study completed
For further information contact: Ian Haine + 61 2 6272 2031
Minerals processing facilitiesExpected New Capital Employ-
Project Company b Location Status c startup capacity d expend. e ment fAlumina
Alcan Alcan Gove, NT Expansion and 2007 1700 kt US$1.3b 1700 Crefinery plant optimisation, (A$1.86b) 120 O
expansion committed
Comalco Comalco Yarwun, near New project, late 2004 1400 kt $1.5b 2300 Calumina refinery Gladstone, under construction alumina 400 Oproject (Stage 1) Qld
Pinjarra refinery Alcoa/Alumina Pinjarra, Expansion, late 2005 600 kt $440m 1000 Cefficiency upgrade WA under construction 65 O
Worsley refinery BHP Billiton/ near Bunbury, Expansion, early 2006 250 kt US$165m 400 Cexpansion (Worsley Japan Alumina/ WA committed (A$236m)
Alumina Development Sojitz AluminaCapital Projects)
Comalco Comalco Yarwun, near Expansion, na 2800 kt na naalumina refinery Gladstone, under alumina
expansion (Stage 2) Qld consideration
QAL Queensland Gladstone, Expansion, na 1300 kt na narefinery Alumina Qld prefeasibility alumina
expansion studycompleted
Wagerup Alcoa/Alumina Darling Expansion, na 2000 kt $1.5b 1500 Crefinery Ranges, WA feasibility study alumina 150 O
expansion and public– Unit 3 consultations
under way
For further information contact: Will Mollard + 61 2 6272 2096
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
AluminiumKurri Kurri Hydro Kurri Kurri, Efficiency 2005 7 kt $38m naaluminium Aluminium NSW improvements,
smelter under construction (Surf project St. 1)
Tomago smelter Tomago Tomago, NSW Efficiency 2007 70 kt $210m 300 Cupgrade Aluminium improvements, 50 O
under construction
Aldoga Aldoga Aldoga, near New project, 2006 630 kt $2b 1500 Csmelter Aluminium Gladstone, feasibility study 950 O
Qld completed. Env'talapproval granted
Boyne Island Comalco Gladstone, Expansion, na 218 kt $700–800m 650 Csmelter Qld deferred 100 O
expansion indefinitely
Kurri Kurri Hydro Kurri Kurri, Efficiency 2006 8 kt $50m naaluminium Aluminium NSW improvements,
smelter EIS and feasibility (Surf project St. 2) study completed
Kurri Kurri Hydro Kurri Kurri, Expansion, na 200 kt $800m 250 Caluminium Aluminium NSW under review 230 O
smelter (fourth potline)
Tomago smelter Tomago Tomago, NSW Expansion, na 200 kt $1.2b naexpansion Aluminium on hold
(fourth potline)
For further information contact: Will Mollard + 61 2 6272 2096
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
CopperElectric settling Xstrata Mt Isa, Qld New project, na 2% capacity $29m nafurnace project feasibility study increase
under way
For further information contact: Will Mollard + 61 2 6272 2096
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Crude iron and steelHIsmelt iron Rio Tinto/Nucor/ Kwinana, New project, late 2004 820 kt pig $400m 320 C
plant Mitsubishi/ WA under construction iron 80 OShougang
Port Kembla Bluescope Port Kembla, Expansion, 2006-07 400 kt $100m 150 Chot strip mill Steel NSW under construction na O
Coating plant Bluescope Sydney, New project, 2005-06 100 kt coated $100m naSteel NSW feasibility study steel
under way
Cold rolling Protech Newcastle, New project, 2007 520 kt steel $600m 700 Cmill NSW feasibility study 365 O
completed
Specialty Steels Boulder Ipswich, New project, 2006-07 230 kt $750m 500 CProject Group Qld feasibility study specialty 400 O
under way steel
For further information contact: Simon Richmond + 61 2 6272 2271
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
MagnesiumLatrobe Latrobe 150 km E of New project, 2008 100 kt $984m 800 O
magnesium Magnesium Melbourne, alternative magnesium 450 Cproject Vic technologies and metal
sites beingexamined
TasMag Indcor Bell Bay, New project, na 90 kt $800m naproject Tas on hold magnesium
metal
Woodsreef Pacific Woodsreef, New project, na 80 kt $681m namagnesium Magnesium NSW on hold magnesium
project Corporation metal/alloy
For further information contact: Ian Haine + 61 2 6272 2031
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
NickelYabulu QNI Townsville, Expansion, 2007 44.5 kt Ni US$350m 400 Crefinery (BHP Billiton) Qld committed 1.4 kt Co (A$500m) 90 O
expansion (linked toRavensthorpe
mining project)
For further information contact: Simon Richmond + 61 2 6272 2271
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
Titanium mineralsERMS synthetic Austpac Eastern seabord New project, 2005 30 kt synthetic $50m na
rutile plant Resources (exact location feasibility study rutileunder under way 21 kt iron
consideration) pellets
Kemerton Millennium Kemerton, Expansion, na 110 kt TiO2 $470m 500 CTiO2 pigment Inorganic WA on hold pigment 200 O
plant Chemicals
Kwinana Tiwest JV Kwinana, Three stage na 180 kt TiO2 $200m 108 CTiO2 pigment WA expansion, pigment 98 O
plant stage 1 envt'alapproval granted
For further information contact: Gerard Burg + 61 2 6272 2052
Expected New Capital Employ-Project Company b Location Status c startup capacity d expend. e ment f
ZincZinc ferrite Sun Metals Townsville, New project, by 2006 na $50m na
reprocessing Qld committedplant
For further information contact: Simon Richmond + 61 2 6272 2271
a Includes projects expected to commence production over the medium term and for which capital expenditure is expected to exceed $40 million (except for gold projects, for which the expenditure threshold is $15 million). b Principal operating companies. c Type of project and stage of development – categories of the former include: 'new project' and 'expansion'; categories of the latter include: 'feasibility study under way', 'feasibility study completed', 'committed' and 'under construction'. d Annual incremental capacity expected in terms of contained metal or product; for example, zinc content in zinc concentrates production or salable coal in coal produced. For oil and condensate kbd ('000 barrels a day) and gas (terajoules a day) and liquid petroleum gas LPG (Mt). e Total capital expenditure as reported by the company in current dollars. Includes cost of development, plant and equipment. f Reported employment. Where possible, project employment has been shown at both the construction phase (shown as 'C' against the employment numbers below) and in the operational phase (shown as 'O').na Not available.