PRO©UCTIOH - Department of Mines, Industry Regulation...

PRO©UCTIOH

Dept. o~ M~e~als & E:~e~gy

, last paragraph, first line - Replace "will be introduced into Parliament shortlj’ with"have been passed by Parliament".

Page 14, lastparagrapb, first line- Replace "$2, 662 million" with "2,642 million".

6, seventh paragraph, first line - Replace "a 4.5percent employment increase in theState’s mineral and petroleum industry to 3 7,14 7peopld’ with "a 4.3 percent employmentincrease in the State’s mineral and petroleum industry to 37,076 people".

Page 26, last paragraph, first line- Replace "The number of people employed in thepetroleum industry grew slightly to 1,205 in 19.94/95." with "Despite a 41.2 percentincrease in the value of petroleum output in 1994/95, employment in the petroleum sectorfell by 5.3 percent to 1,134."

1994.95 STATISTICS DIGN

FOREWORD

1.

2o

Page

ECONOMIC AND SOCIAL ENVIRONMENT .................................................................................... 1

1.1 World Economic Overview ..........................................................................................................11.2 Review of the Western Australian and Australian Economy ......................................................31,3 Economic Factors Affecting the Mining Industry ........................................................................41.4 Social Factors Affecting the Mining Industry ...............................................................................5

REVIEW OF MAJOR MINERALS AND PETROLEUM ....................................................................10

2.1 Overview and Outlook ..............................................................................................................102.2 Petroleum ...................................................................................................................................102.3 Gold ............................................................................................................................................122.4 Iron Ore ......................................................................................................................................142.5 Alumina ......................................................................................................................................172.6 Nickel ..........................................................................................................................................192.7 Diamonds ...................................................................................................................................202.8 Heavy Mineral Sands ...................................-. ..............................................................................212.9 Other Minerals ............................................................................................................................23

3. EXPLORATION AND MINING INVESTMENT ............................................................................... 25

4. EMPLOYMENT IN THE MINERALS AND PETROLEUM INDUSTRY ...........................................26

TABLES

4.1

5.1

6.1

7.1

8.1

Quantity and Value of Minerals and Petroleum 1993-94, 1994-95 .................................................27

Quantity and Value of Minerals and Petroleum By LocalGovernment Area .............................................................................................................................30

Royalty Receipts 1993-94,1994-95 .................................................................................................,.. 37

Employment in the Mineral and Petroleum Industries ...................................................................40

Principal Mineral and Petroleum Producers ....................................................................................44

Abbreviations, References, Units and Conversion Factors ................ Inside Back Cover

Department of Minerals and Energy

1994-95 STATISTICS DIGESTFIGURES Page

1.1

1.2

1.3

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

2.11

2.12

2.13

2.14

2.15

2.16

2.17

2.18

2.19

2.20

2.21

2.22

2.23

2.24

4.1

6.1

Exchange Rate: $A/$US ......................................................................................................................5

Exchange Rate: $A/Yen .....................................................................................................................6

Major Mineral and Petroleum Projects in Western Australia .............................................................9

Oil and Condensate: Quarterly Production & Value .....................................................................10

Crude Oil Price .................................................................................................................................11

Crude Oil and Condensate Production ...........................................................................................11

Petroleum Exports ............................................................................................................................12

Gold Quarterly Production & Value ................................................................................................13

Gold Production ...............................................................................................................................13

Gold Price .........................................................................................................................................14

Gold Exports .....................................................................................................................................14

Iron Ore Quarterly Production & Value ..........................................................................................15

Iron Ore Price ...................................................................................................................................15

Iron Ore Production .........................................................................................................................16

Iron Ore Exports ..............................................................................................16

Alumina Quarterly Production & Value ..........................................................................................17

Alumina Price ............................................................................................ 17

Alumina Production ............................................................... 18

Alumina Exports ..............................................................................................................18

Contained Nickel ..............................................................................................................................18

Nickel Exports ....................................................... 19

Nickel Price " . ................................................. 20

Nickel Production .............................................................................................................................20

Heavy Mineral Sands Price Index ......................................................................i .............................22

Heavy Mineral Sand Exports ............................................................................................................22

Ilmenite Quarterly Production & Value .......................................................: .................................23

Ilmenite Production ..........................................................................................................................23

Comparative Value Of Production 198%90, 1994-95 .......................................................................29

Comparative Royalty Receipts 1989-90, 1994-95 .............................................................................39


1994.95 STATISTICS DIGEST

FOREWORD

This issue of the Department of Minerals and Energy’s Statistics Digest highlights the emergence of thepetroleum sector as the State’s leading resource industry, and moves by industry to process the State’siron ore resources further.

While this publication deals with the 1994/95 financial year, continuing developments are alreadyproducing some exciting statistics for the next year. The increase in oil production from the CarnarvonBasin during the third quarter of 1995 has allowed Western Australia to overtake Victoria’s averageproduction for the same period. With the Wanaea-Cossack project in the Carnarvon Basin reaching fullproduction of around 115,000 barrels of oil per day (bopd) as this publication goes to press, WesternAustralia’s oil production will be around 400,000 bopd by December 1995.

In addition to the increase in oil production, there are other exciting developments. BHP’sannouncement to proceed with its DRI plant means another very significant boost to the long-heldgoals of Government to achieve downstream processing of the State’s resources.

In 1994/95 Western Australia’s resources sector continued to underpin the State’s economy, accountingfor around 28 percent of State Gross Product and over 70 percent of its exports.

The value of production rose by 10 percent in 1994/95 to around $13,870 million, primarily as a resultof increased volumes of production and sales rather than price rises. The rise in value was mainly as aresult of the strong increase in production of oil, nickel, LNG and mineral sands.

The major issue facing the mining and petroleum industry over the last year has been native title. Thecomplexities of the processes involved in working with the Federal legislation have affected thegranting of titles by the State. Despite this Western Australia continues to be an area of internationalinterest for exploration, although exploration overseas by local companies is rising.

There have been some important additions to the State’s 1994/95 mineral and petroleum productioncapacity. These include the Youanmi underground and Bronzewing open cut gold mines; Mt Keithnickel mine and the Marandoo iron ore operations. The Goodwyn A gas platform, the Griffin,Scindian, Roller and Skate oil and gas fields have enhanced petroleum production.

The outlook looks bright with a number of projects coming on stream in 1995/96. These include theNorth West Shelf LPG plant; a fines processing plant at Paraburdoo, the Jundee gold mine, theexpansion of Western Mining’s nickel operations and the Wanaea/Cossack oil and gas field.

Deregulation of the gas market, construction of the Goldfields gas pipeline coupled with continuedstrong Asian growth and favourable commodity prices, all suggest that the outlook for WesternAustralia’s mineral and petroleum sectors is bright.

K R PerryDIRECTOR GENERAL


1994.95 STATISTICS DIGEST1. ECONOMIC AND SOCIAL

ENVIRONMENT

1.1 World Economic Overview

The major economies experienced stableeconomic growth in 1994/95, with the exceptionof Japan where growth remains subdued. Asianeconomies continued to grow strongly. TheOrganisation for Economic Co-Operation andDevelopment (OECD) economies are expected togrow by around 2.5 percent in 1995, followinggrowth of 2.9 percent in 1994. Asia recordedeconomic growth of 8.8 percent in 1994 and,according to the Australian Bureau of Agriculturaland Resource Economics (ABARE), this isexpected to moderate slightly to around 8.3percent in 1995.

US Economy

The United States economy grew by 3.1 percentin 1994/95, but growth has significantlymoderated over the latter half of the year. Inresponse to concerns about this markedslowdown US monetary authorities loweredinterest rates by 0.25 percentage points in earlyJuly 1995.

Japanese Economy

Japan recorded economic growth of 0.5 percentin 1994. Growth is forecast to rise to around 1.0percent in 1995. Nevertheless to date, economicrecovery has remained weak in Japan, despitesignificant economic stimulus measures by theJapanese Government’s over the last three years.This has been mainly due to the sharpappreciation in the Yen in the first half of 1995,which increased by around 15 percent against theUS dollar.

The vast amounts of bad loans, largely as a resultof property and share market speculation in the1980s, were officially estimated at Y50,000 billion(A$670 billion) at September 1995. The financialsector has been further hit by the failure of twofinancial institutions in September 1995 (making atotal of five over the last two years),disappointing ratings by Moody’s InvestorsService, and the disclosure of a colossal11851.1 billion (A$1.5 billion) loss at Daiwa Bankfrom unauthorised trading in New York.

The Financial System Stabilisation Committeedelivered its report to the Japanese Governmentin late September, outlining recommendedcorrective measures. The suggestions are made invery broad terms and the Government haspromised to announce specific measures by theend of 1995.

Asian Economies

Asia’s economic growth is beginning to bepushed along by higher domestic consumerspending, which is complimenting governmentinvestment and export oriented privateinvestment. This purchasing power is building upmomentum for greater consumption in Asia inthe near future.

The World Bank has estimated that during thenext decade, East Asia’s booming economies willneed to spend $US1,500 billion to expand power,telecommunications, transport and otherinfrastructure. East Asian investors are alsoincreasing their presence in European Union (EU)countries.

A growing European economic presence in Asiais expected to intensify already fierce rivalry formarket share between the US, Japan, other Asiancountries and Australia. East Asia is the fastestgrowing market for EU exports, absorbing 18% ofsales to non-EU countries in 1994, up from 7% in1980.

The Chinese market is singled out as the greatestopportunity for Europe to establish a significanttrade presence in Asia. Liberalisation of theChinese economy has contributed to the realgrowth rates of between 12% and 13% over thepast few years and to total trade growing at twicethis rate. However, concerns over China’sinflation rate which on annualised basis in July1995 was 16.7 percent could hinder China’sfuture growth and stability.

The pull out by Elf-Acquitaine, a major French oilcompany, from a US$2.5 billion refinery projectin Shanghai has adversely affected China’s allureas a centre for big-ticket foreign investment,particularly in the oil industry. Elf diplomaticallycited restricted access to China’s markets and anuncertain regulatory environment as the mainreasons for their withdrawal.


1994.95 STATISTICS DIG[STNevertheless China continues to attract vastvolumes of foreign capital. By the end of 1994,China had approved US$304 billion(A$401 billion) in foreign investment since itstarted opening its economy in 1978, and hadseen US$95.5 billion of that realised in actualinflows u15 to December 1994.

Export growth in South Korea has been drivingits exceptional economic growth, with growth ofaround 8.5 percent expected in 1994/95. In thefirst half of 1995 exports from South Koreaexpanded by 34% - the highest among the 25OECD members and the newly industrialisingeconomies. South Korea has emerged as the 11thlargest world economy with a trade volume ofUS$167.6 billion between January and August1995. The country hopes to be among theworld’s top 10 trading nations by 1997.

Singapore’s economy continues its upwardgrowth and its labour market is at near capacity.Surprisingly Singapore’s inflation rate of 2.6percent for 1994/95 suggests that its tight labourmarket has not spilled over into higher wagesand higher inflation levels.

Taiwan continued along a strong economicgrowth path, recording growth of 6.6 percent in1994 with an expected rise of 7.0 percent in1995. Foreign reserves are forecast to build toUS$100 billion this year, on the back of a 22.7%annual growth in exports. Taiwan has reaffirmedits place as the 14th biggest trading nation.Foreign investment rose by US$100 million in1994/95 to more than US$1.7 billion. However, astrong leakage of investment from Taiwan toChina is a concern as industries relocate. Forexample, it is estimated that in the first threequarters of 1995 about US$20 billion ofTaiwanese money has been reinvested intoChina. Despite these problems the economy isforecast to continue to grow by 7.0% in 1996.

Western Europe

Growth of 2.9 percent was recorded in WesternEurope in 1994. Similar growth is expected for1995.

Growth in the United Kingdom has stabilised butthere are emerging signs that inflationarypressures are beginning to build. UK growth isforecast to fall from 3.8 percent in 1994 to 2.8percent in 1995.

Germany’s strong and continued export growthhas seen its economy come out of recession in1993 to record growth of around 2.9 percent in1994. Growth of 2.6 percent is expected for 1995.A cut in the official discount rate of 0.5percentage points in August 1995 is expected tostrengthen private consumption and businessinvestment expenditure in 1996.

The change in Government in France followingthe elections has seen a reappraisal of Frenchpolicy. In particular there are European concernsthat France is beginning to hinder thedevelopment of the European Union and inparticular European monetary union. Despite thisthe French economy is expected to grow by 2.9percent in 1995, following growth of 2.8 percentin 1994.

Other World Economies

The largest economies in Eastern Europe haverecorded moderate growth in 1994/95 of around3.5 percent. However the former Soviet Unionhas continued recession with growth falling by 15percent in 1994 and expected to fall further in1995.

Poland has lifted itself out of the economic ashesof the fall of European communism with a neweconomic order emerging in the country which isexpected to push economic growth to 6.5% in1995 and to 5% in 1996. Although starting from alow base, Poland’s growth rate of 5.5% in 1994was impressive for an economy which hasundergone sweeping privatisation and makes itone of the fastest growing economies in Europe.Expansion was recorded in a range of industries,but a 24% rise in exports in 1994, and a 38% riseexpected for 1995 has been the driving forcebehind the economic growth. A key factor in thecountry’s export growth has been the nation’senormous gains in productivity. This has allowedPoland to quickly replace the old Soviet Unionwith the European Union as the major source oftrade.

According to ABARE, L~tin America is expectinggrowth of around 3.0 percent in 1995, followingrecorded growth of 4.7 percent in 1994.

Outlook

In November 1995, the International MonetaryFund (IMF) lowered its growth forecast for


1994.95 STATISTICS DIGESTindustrialised countries from 3% to 2.5% for 1995,with a further decline to 2.4% in 1996. This wasbased on assumed higher growth in Asia, littlechange in US growth, and a contraction ofactivity in Japan and Europe.

1.2 Review of the WesternAustralian and AustralianEconomy

The Australian national economy grew stronglyover the first half of the financial year andmoderated over the remainder of the year.Overall, real gross domestic product increased by4.5 percent in 1994/95. This was largelyattributed to continued growth in private andpublic consumption and, encouragingly, businessinvestment which grew by over 16 percentduring the year.

Western Australia’s economic growth continues tooutpace that of all other States with gross stateproduct growing by 5.7 percent in 1994/95.Private final consumption increased by 3.7percent over the year and more significantly,business investment continued to grow strongly,increasing by over 21 percent during the year.

Employment in Western Australia increased by4.9 percent in 1994/95. Western Australia’saverage unemployment rate fell from 8.9 percentin 1993/94 to 7.6 percent in 1994/95, the lowestrate in Australia.

Australia’s employment growth was 4.0 percentover the corresponding period and its averageunemployment rate fell to 9.0 percent in 1994/95.

There is emerging evidence that both theAustralian and Western Australian economy areslowing with growth now considered to be at amore sustainable level. In particular, dwellinginvestment, building approvals and housingfinance have continued to fall since the Junequarter. Nevertheless business investment inWestern Australia continues to grow strongly witha 6.5 percent rise recorded in the June quarter.Nationally, business investment fell by 0.9percent over the same period.

The slowing GDP growth has began to affect theWestern Australian labour market, with theOctober 1995 unemployment rate of 7.3 percentbeing unchanged from that in June 1995.

Nationally the unemployment rate rose from 8.3percent in June 1995 to 8.7 percent in October1995.

In 1994/95 Australia’s inflation rate rose by 3.2percent while average weekly earnings rose by3.4 percent. The corresponding growth rates forWestern Australia were 3.5 percent and 5.5percent respectively. While inflation acceleratedin the September quarter, this reflected a numberof once off factors such as increased taxes ontobacco, fuel and alcohol.

The 5.3 percent rise in Australia’s weeklyordinary time earnings for fulltime adult workersfor the year to September 1995 dashed anyimmediate hope of interest rate cuts as wagesgrowth is now above the Reserve Bank’s comfortlimit. These higher wages, combined with highermaterial and import costs caused by a failingexchange rate in the first half of 1995, havegenerated upward movements in prices.Underlying inflation increased by 2.5 percentover 1994/95, after three years of rises of around2 percent.

Recognising strengthening domestic expenditureand the associated rise in inflationary pressures,the Reserve Bank of Australia lifted interest ratesin 1994/95. Three policy tightenings in the firsthalf of 1994/95 raised official cash rates by a totalof 2.75 percentage points.

Long term interest rates also rose in the first halfof 1994/95, with increases due to concernsregarding overseas financial conditions,particularly those in the USA and medium terminflation fears in Australia. These fears werelargely allayed in the second half of the year asdomestic expenditure growth in Australia slowedand consequently long term rates eased.

In conjunction with a tighter monetary policy roleby the Reserve Bank, the Commonwealth isattempting to reign in the Budget deficit, whichstood at around $11.6 billion in 1994/95. TheCommonwealth has budgeted for a surplus ofaround $0.7 billion for 1995/96.

The $A gained ground against a number ofcurrencies in the first half of 1994/95, inparticular recording a large rise against the USdollar (Figure 1.1). In part the rise in the $A to77.7 US cents and 77.56 Yen in December 1994was attributed to increases in Australia’s interest


1994.95 STATISTICS DI(]ESTrates over the period and the positive outlook forcommodity prices. Since then the Australiandollar depreciated, largely as a result ofworsening balance of payments figures, finishingat 70.9 US cents and 60.08 Yen in June 1995(Figure 1.2). The trade weighted index, whichmeasures Australia’s real exchange rate andprovides an indication of its internationalcompetitiveness, fell to 48.4 in June 1995, downfrom 53.0 in June 1994. Australia’s real exchangerate is now 10 percent lower than in 1990, whichis a gain in international competitivenessaccording to this simple measure.

Australia’s current account deterioratedsignificantly in 1994/95, rising by 55 percent tomore than $26 billion. The deterioration wasmainly attributable to a significant increase in themerchandise trade deficit. This led to industrywide fears that the Reserve Bank would liftofficial interest rates in the second half of the1994/95 year as a means to address the increasedimbalance in Australia’s external accounts. Thesepressures diminished somewhat with substantialimprovements in the merchandise trade accountin both August and September.

On the other hand Western Australia againrecorded an overseas trade surplus at around $11billion. The value of total State trade increasedfrom $20.5 billion in 1993/94 to $22.3 billion in1994/95, with overseas exports rising by 5percent to A$16.5 billion.

Japan increased its relative share of WesternAustralia’s total exports in 1994/95 to 31 percent,due mainly to increases in exports of gold andcrude oil. South Korea remains second to Japanwith 10 percent of total exports at $1.7 billion,followed by Singapore (7 percent) and the USA(7 percent). Petroleum and mineral exportscontinue to account for more than 70 percent ofState exports.

The outlook for the Australian and Stateeconomies is positive with growth forecast at 3.75percent and 4.25 percent respectively. Thisrelatively slower growth will reduce some of thepressure on the inflation rate and balance ofpayments, and reduce the need for interest raterises.

1.3 Economic Factors Affecting theMining Industry

The resurgence of the world economy wasgenerally welcomed by the mining industry. Inparticular the increase in commodity prices gavethe industry the confidence to expand and investin new projects.

Western Australian mining industrycompetitiveness improved in 1994/95 with thefurther deregulation of the energy market andcontinuing labour market and financial reform.

The large rise in the Australian dollar over thefirst half of 1994 against the $US and JapaneseYen reduced many of the gains derived by themining industry through higher commodityprices. This position was reversed over thesecond half of the year when the Australiandollar depreciated.

As a result of Australian growth slowing to moresustainable levels, since June 1995 the Australiandollar has appreciated in value against all majorinternational currencies. If this trend in theAustralian dollar continues it will reduce thebenefits to the mining industry of risingcommodity prices as the rising $A will reduce the$A return on many of Western Australia’s mineraland energy exports over 1995/96.

The rise in the corporate tax rate from 33 to 36percent in 1995/96 will have some adverseimpacts on the mining industry. Nevertheless,interest rates are expected to be largelyunchanged in 1995/96, due to an expectedcontainment of Australia’s inflation rate andimprovements in its trade accounts.

The 18 Asia-Pacific Economic Co-operation(APEC) nations have found the issue of tradeliberalisation for "sensitive sectors" of particulareconomies, particularly the removal ofagricultural protection policies, a stumbling blockin their efforts to set up a truly free trade zone.The potential cost to Australian industry is thatthe full benefits of trade liberalisation, ifcompromises are made, may therefore be lost ina watered down version of APEC commitments.

The oudook for Western Australia’s mining andpetroleum industry is very bright. Commodityprices are expected to rise over the next year andexport penetration on international markets,


State’s mining industry. Currently around 70percent of the State’s mineral and energy exportsare to the Asian region.

EXCHANGE RATE: SA/$US

us cents8o

75

70’

65.

ASONDJ FMAMJ JASONDJASONDJ FMAMJ

MONTHS

;ource: Reserve Bank Bulletin Figure 1.1

The mining industry is in a good position tocontinue its strong growth and a number of majorprojects are currently being constructed or arecommitted with a value in the vicinity of $A7,000million.

1.4 Social Factors Affecting theMining lndustry

Native Title Issues

Without doubt the major issue over the financialyear has been native title and its impact on themining and petroleum sectors.

The High Court decided on 16 March 1995 thatthe State’s Lands (Titles and Traditional Usage)Act was invalid, and as a result the issuing of WAtitles became subject to the full provisions of theFederal Native Title Act.

Uncertainties with the Federal Act has led tosignificant delays in mineral title approvals in

The issuing of Miners’ Rights by the State wassuspended between 16 March and 1 May, 1995and the issuing of petroleum titles was alsosuspended from 16 March 1995 to September1995. This allowed the State time to assess theimplications of the High Court’s decision.However, the issuing of prospecting andexploration licences continued.

The Western Australian Government has nowimplemented procedures consistent with theFederal Government’s Native Title Act andinformed petroleum and mineral explorers andminers of the new requirements. All titleapplications are advertised by the Department ofMinerals and Energy (DME) and are then referredto the National Native Title Tribunal. If anAboriginal group does not lodge a claim over thetenement within three months then DME mayissue a title. Areas subject to a native title claimmust be resolved by the National Native TitleTribunal (or a negotiated settlement acceptable toall parties is reached) before DME can issue atitle to that area.

As at September 1995 current grants are nowprogressing at around the level prior to the HighCourt’s decision in March 1995. Nevertheless, it isdear that approvals processes for the granting ofExploration Licences and Mining Leases havebeen significantly lengthened under the FederalNative Title Act.

The WA and Federal Governments are stillnegotiating establishment of a State based nativetitle tribunal to complement the Federal NativeTitle Tribunal. It is intended that theseState-based tribunals would run parallel to andact as an alternative to the Federal body. InOctober, 1995 the South Australian Governmentset up the first of such State based tribunalsystems in Australia.

A key issue relevant to Western Australia iswhether pastoral leases extinguish native title.This remains largely unresolved.

Institutional Changes

Amendments to the State’s Mining Act andRegulations will be introduced into Parliament


1994.95 STATISTICSshordy. The amendments aim to reducedisputation and further encourage mineralexploration in the State. The changes include:

special prospecting licenses ranging in tenurefrom three months to four years;

the removal of legal restrictions on aerialsurveys; and

the introduction of a ballot system wherecompeting tenement applications were lodgedon ground previously relinquished or forfeited.

In early 1995 media speculation emerged that theCommonwealth was intending to introduce aCarbon Tax and was aiming to significantlymodify the diesel fuel rebate scheme. Followingstrong lobbying by State governments andindustry the Commonwealth rejected anysuggestions of a Carbon Tax. Whilst only minorchanges to eligibility criteria for the diesel fuelrebate scheme were introduced they are currentlybeing examined by the CommonwealthGovernment (and Industry).

EXCHANGE RATE: $A/YenYen

]o

8o

55ASONDJFMAMJJASONDJASONDJ MAMJ

MONTHS

The Australian Mining Industry Council (AMIC)officially changed its name to the MineralsCouncil of Australia (MCA) at the beginning ofJune as part of a strategy to position theorganisation for a more effective role as theminerals industry national representative body.

Following a comprehensive internal review, theCouncil aims to represent a broader range ofmembers and to become more pro-active in itsapproach.

Environmental Issues

The State Government has continued its policy of

balancing environmental and developmentobjectives. A policy for the management of theState’s marine reserves, including mineral and

petroleum exploration was adopted in 1994/95.As part of the process of adopting the policy the

Government announced that future drillingexploration in the Ningaloo Marine Park was

prohibited.

In May 1992 all Australian Governments signed

the Intemational Agreement on the Environmentwhich amongst other things called for the

establishment of an National EnvironmentProtection Council with a goal to set nationally

uniform standards for the environment. After theWA Government was satisfied that it would not

become captive to an unsuitable set of standardsdetermined by a majority of other Stategovernments, State Cabinet agreed on 7

September 1995 that Western Australia join theNational Environment Protection Council.

The Commonwealth has also attempted toincrease its influence over environmental issuesthrough its own Commonwealth EnvironmentalProtection Agency (CEPA). Proposals to expandCEPA’s brief to include projects that areconsidered inconsistent with Australia’sintemational treaty obligations are beingexamined by the Commonwealth Government.

BHP’s handling of the dispute over the OK Tedimine in Papua New Guinea has prompted CEPAinto the first phase of developing anenvironmental code which would coverAustralian companies operating overseas. CEPAhas indicated that consultation will take placewith industry in the development of the code.

A Code of PracticeforExploration inEnvironmentally Sensitive Areas was developed in

April 1995. The document aims to promote bestpractice management at all stages of mineralexploration and was joindy prepared by theChamber of Mines and Energy’s Conservation,

Environment and Land Management Committee

and Expk~ration Council in consultation with the


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STATISTICS DIGEST2.5 billion tonnes of bauxite; and3,434 tonnes of gold.

The known gold reserves are at an all timerecord high. Recent high levels of exploration areexpected to uncover new resources and keepAustralia as the world’s third largest producerbehind South Africa and the US.

Research

WA’s northern Goldfields have been chosen asthe focus for a joint Federal and StateGovernment study to identify the region’sresource potential and infrastructure needs. Thestudy aims to develop a co-ordinated approachbetween government and industry to developprocessing opportunities and infrastructure. Thenorthern Goldfields area was chosen for thestudy predominantly due to the developmentpotential to be created by the Goldfields GasPipeline. The study will identify suitable costsharing arrangements for mineral developments,such as a pool of companies contributing tomajor consolidated gold processing facilities orperhaps a new nickel smelter.

In addition, the Federal Government recentlycommitted a further A$1.8 million to theAustralian Geological Survey Organisation toundertake exploration and collate resource datain the northern Goldfields. The allocation is to bespread over four years and is intended toenhance the future prospects for development ofother projects in the area north of Wiluna.

Research into rehabilitation techniques for tailingsdams which began in March 1994 is continuing.The joint three year project between theUniversity of WA, the Australian Centre forGeomechanics and the Department of Mineralsand Energy in WA is being funded by the goldmining industry and the State Government.


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2. REVIEW OF MAJOR MINI RALSAND PETROLEUM

2.1 Overview and Outlook

In 1994/95 the Western Australian miningindustry again demonstrated that it is a majorplayer in international resource markets.Constant improvements in technologicalcapabilities and exploration techniques over thelast 15 years has been reflected in a 5 foldincrease in the value of mineral and energyproduction in that time.

The value of production rose by 9.9 percent in1994/95 to around $13,870 million. The rise wasmainly attributable to the strong increase inproduction of oil, nickel, LNG and mineral sands.

OIL & CONDENSATE

Production & Value by Quarter

GL SA MRRon3.5 700

2.5

1.5

0.5

SEP93

600

5OO

400

300

200

100

i 0JUN

Figure 2.1

The performance of the industry was impressivein 1994/95 with production increasing for mostminerals, the most notable exception being gold.

In 1994/95 the industry as a whole had higherinvestment and exploration levels but profitswere reduced.

In US$ terms for the year, small price increaseswere recorded for most minerals including goldand oil with others, such as copper, zinc andnickel, recording substantial price rises. Howevermuch of the gains in prices over the first half ofthe year were countered by a stronger Australiandollar.

Western Australia is expected to continue to be asignificant world player on many internationalcommodity markets. Western Australia currentlysupplies (by quantity) around 12 percent of theworld’s iron ore production, 8 percent of its goldand LNG production, 18 percent of its aluminaproduction and 40 percent of its diamondproduction. The State’s prominence on theinternational minerals scene is expected to bemaintained well into the 21st century.

2.2 Petroleum

Introduction

The combined value of petroleum output rose by41.2 percent to $3,661 million, accounting for26.4 percent of the value of Western Australia’stotal mineral production. This is the first time thevalue of petroleum was higher than the value ofany other mineral in Western Australia.

Production from the North West Shelf areaincreased substantially in 1994/95 due to theaddition of the Goodwyn A platform and theGriffin, Scindian, Roller and Skate oil fields. As aresult oil production rose by 86 percent in1994/95 to 9.9 million kl. LNG production roseby 20 percent.

On the back of increased production and firmerprices, the value of natural gas, condensate andcrude oil produced rose by 52.0 percent to$2,398 million (Figures 2.1 & 2.2). Also reflectingincreased volume of production the value of LNGproduced rose by 24.3 percent to a record of$1,263 million.

Other Petroleum Industry Highlights

Petroleum industry highlights include:

WA oil production ndw accounts forapproximately 45% (up from 36% in calendaryear 1994) of total Australian crude oil andcondensate production and about 51% of totalgas production. (Refer Figure 2.3).


~6Jau:1 pu~ Sl’eJaU![A] ].0 !,uauJIJeda(1

s:~aqtuatu DadO uou tuo.~j l~u.m~oa s!Xlddns s!q! jo asoIN ’X~p :~ad sla:u~q uo!iip.u g¢’>gjo :Su!I!aa (D,qdO) ,sa!alun°D ~u!~odx.q tunaloalad

jo uo!l~s!u~:8:~O aql u~ql aaotu K~p aad slaJ~quo!ii!tu [ lnoq~ s! uo!aanpoad I.~O pI~o~ lua=nD

"966I u! Xpqg!Is W3 ol paaaadxaas~ saa!ad I!O ’pu~tuap u~ql aals~3 alll!I ~

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Xq ~xaa~ qa!qax) uo!lanpoad I!O slaadxa ~IVgV

’96/g66~ u!luaa.~ad {’L Aq axo;~ ol as~aaaoj s! 1! a.~aqax ’~!sV

tuoaj amoa o1 palaadxa s! uo!ldmnsuoa i.~o piao~u! as~a:~au! aql JI~H ’96/�66[ u! auaasad I’g Xq~o~ ol uoBdtunsuoa I!O pIsoax slaadxa ~IVlRV

:qoolmo Aalsnpui ~aloala~l plaoA’~

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jo pua oql ag paaunouug sere Xpms Xl!i!q!sgaj V *

¯ apgJ~dn au!iod!d sg8 igJm~u ~nqun~toa .~o!dtug(I aql jo os~qd as:~!j uo!II!tU 00I$::lOIl::ld "110 ~anuo

S lglfl S3IISIL¥$S g6"! 66I

1994.95 STATISTICS DIGITS]international community. The setting of the new1996 OPEC oit production ceiling will beimportant in negating the potential of oil pricefalls in 1996.

It has been recently suggested that a combinationof Australia’s LNG production capacity andJapanese technological prowess may aid inmeeting China’s energy demands. China isreportedly suffering severe energy shortages as aresult of its spectacular economic growth rates.

PETROLEUM EXPORTSTOTAL VALUE : $2,661 MILLION

Japan60.2%

Singapore Other6.1% 10.0%

Indonesia S. Korea7.1% U.S.A. Taiwan 4.7%

6.4% 5.5%

sour== DME F|qure 2.4

State Petroleum Outlook

The outlook for the petroleum industry in WA isextremely positive with many possible oil, gasdelivery and gas processing projects on thehorizon. These include:

WMC’s East Spar field is scheduled to beginproduction in early 1997 and expected tosupply gas into the Goldfields gas pipeline.Current East Spar gas reserves are estimated at10 billion cubic metres.

Domestic gas demand is forecast to rise fromthe current level of 540 TJ/day to between970TJ and 1,300TJ per day by 2004.Deregulation of the gas market and thisresultant increased demand should lead to afurther increase in exploration activity and a

continuance in the trend to prove up gasreserves.

Full production from the $610 million Wandoooilfield now producing 17,000 barrels per dayis expected in December 1996.

Exciting developments are occurring in LNGwith two potential projects being examined andpotential new LNG markets opening up in Asia.Plans for a possible stand-alone nine milliontonnes per annum LNG plant are beingdeveloped by WAPET for the Gorgon fields. Atthe same time, an integrated LNG project usinggas from the Gorgon fields and the Rankinfields is being considered by NWS partners andthe WAPET consortium. The eventual outcomeof these corporate negotiations will probablynot be known until early 1996. Thecommencement of one of these would seeWestern Australia becoming a major LNGplayer on international markets.

2.3 Gold

Introduction

The volume of gold produced in WesternAustralia fell by 3.3 percent to 187 tonnes in1994/95. This fall was entirely due to thedisruptive effects of Cyclone Bobby on goldproduction in the March and June quarters .When combined with a higher Australian dollarthe value of production fell by 8.6 percent to anestimated $3,122 million (Figure 2.5).

Nevertheless gold production has risen stronglyover the last 10 years and despite the decline in1994/95, gold is Western Australia’s second mostvaluable commodity. All the indications are thatthe industry will prosper and continue to makean important contribution to growth in this State.

Western Australia accounts for around 75 percentof Australia’s gold production (Figure 2.6).

Industry Highh’ghts

The 11 biggest producing projects in WAaccounted for half of the State’s gold productionin 1994-95.

The trend for companies to increase viable goldreserves and reduce input costs has continuedand has resulted in a number of changes in theState’s gold industry including:


auo moJj ~u!~u~J spo!aad aoj asop ol sau.rm pio~S,all’3S aql jo aaqmnu ~ pasnta g66~ !atmqa~I

alN u! Xqqo~ aUOlaXD Xq pasnta ~u!pookI

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¯ andqgnoJql U~lsap papaaaxa put 566IKinf altI u! pauo!ss.mrmoa stax l!naJ!a allOlJtqD 1N

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’aapunf ’!atm!N ’pu!.4 stUX~l apnlau! 966I jo puaaql Xq mtaals uo amoa ol pmaadxa ao 566I u!

mtaals uo amoa aatq qa!qax slaa!oad plo~ aaqlo

’uo!lanpoad paauammoa XllUaaaa OSltstq ’llaq I~PUtX aql u! ’lna uado ~u!~azuoa{t

a~atI aqz ’laa!oad punoa~aapun .man,noXaql moaj paauammoa uo!lanpmd >66I aatI uI

¯ uo!lualll; josnaoj t ~u.m~oaaq alaq auolsuaaa~ Itputx aqz *

passaaoad ~u!aq a~o X.*ola~ajaa aaOlN ¯¯ ~u!u!m punoa~aapun u! as~aaau! uv.

NgI S)IISIIV£S g6 66!

1994.95 STATISTICS DIGI S day to over two weeks. The cost of CycloneBobby to the gold mining industry wasconservatively estimated at more than A$50million.

GOLD PRICE: $A/oz.

SA100 -~

500 -

450 -

400 -A SON D 3 F M A M J J AS ON D J F M A M

MONTHS

Source: London Gold Price, MonthlyAverage of Wednesday Prices. r=~ure 2.7

suggests that sales of gold bullion for jewellerymanufacture will maintain its 1995 recoveryphase after recording fails in 1993 and 1994.

GOLD EXPORTSTOTAL VALUE : $2,782 MILLION

Malaysia6.5%

Japan29.8%

Hong Kong5.5%

Singapore35.2% Other

0.9%

S, Korea22.1%

JSour=e: OMI~ Figure 2.8

Gold Outlook

Jewellery fabrication in India, the world’s largestgold importer, and in South-East Asia helped topush up global gold sales to a record level of1793 tonnes in the first half of 1995. Imports byJapan also grew rapidly. The Yen’s strengthagainst the US$ made gold much cheaper and theJapanese began buying far larger quantities ofprecious metals after the Kobe earthquake. InEurope, those countries with hard currenciesbought a significant tonnage of gold, while in theUS demand from investment funds remainedstable.

ABARE has estimated that world gold productionwill fall slightly in 1995, before rebounding in1996 to record growth of 3.6 percent. As a resultof a widening in world fabrication demand andworld production gold prices are expected tofirm slightly to around US$400 in 1996.

Strong growth in Asian demand for gold willunderpin growth in jewellery consumption andfabrication. Jewellery consumption is forecast byABARE to grow by 7.4 percent in 1996. This

On the back of favourable international goldmarket conditions, Australian gold production isforecast to increase by 12 percent in 1995/96.This indicates the outlook for Western Australia’sgold industry is bright for 1995/96.

2.4 Iron Ore

Despite a 11.2 percent rise in the volume of ironore production to a record of 133 million tonnes,its value fell by 2.5 percent to $2,794 million in1994/95 as a result of declines in $US contractprices and exchange rate effects (Figures 2.9 and2.10).

Western Australia accounts for more than 95percent of Australia’s iron ore production (Figure2.11).

Iron ore exports totalled $2,662 million in1994/95 with Japan (46%), China (17%), Europe(15%) and South Korea (15%) the State’s largestiron ore export markets (Figure 2.12).


’666I q3asTv~ put 966I I!adv uaaaxlaqsii.rm pals asausdsf ol aao uoa! jo sauuol

uo!ii!m g’gg jo Xlddns aql aoj saal~da~ uolII~ 0gkSV R~o~ I~aP a~aX-aaaql ~ paugls

psq 1~ lsql palsaaaa Aalsaam~H ’a~aX sN1suoll~o~au aalad aao uoal !inaujlp pu~ ~uo[ aq

ol palaadxa sl l~q~ ol alpanq ao(~m ~ ~uD~ulmlla’g66I aaqolao ul slIlm IamS asau~d~f aql

saa~amoa m~al-~uoI lsag~lq sll jo o~ pa~aua~uoaI ~alsaamsH ~s~p~sqns pl~ ~D

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aql aasq IOU op Aaql aaa!Iaq Xaql asnsaaq’asaX s!q! pals!lo~au-a.~ aas slaS.lltlO3 Alddns

aao ur!! uaq~ ’suo!lanpaa aa!ad aaa!qas ol pasq~u!qsnd aq II!*X Xaql PalISU~!S aasq asausdsf aqk

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0

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=11:10 NOI:II

%66I aaqtualdas u! papsoIssm sa!l!l!aSj axod laaqms~I adsD s,als!aossv uoaI

aaa.Pd aqokI moaj aao uoa! a~ISl ol d!qs ql000’{ aqz

¯ au!m oopusaslNs,XalsaamsH ol az!s u! aSl.rm!s aq plnoax laa[oad

aql ~u!usam ’~u!u!m aoj pa!J!luap! uaaq ssqaao jo sauuo! uo!II.rm 00{ ol dfl ’sasqI!d ISaluaa

aql u! l!sodap aao uoa! su!gooa!pusx sly jo XpmsKl!l!q!ssaj ilnj s lasls ol lnoqs ssax uoaI AalsaamsHXas!p!sqns sl! lsltl g66I lsn~nv u! paaunouus V’dD

’salsa uo!Dnpoadluaaana uo passq sasaX 0I usql aaotu Xq au!tu

aql jo aj!I aql papualxa ssq aa!ad moj~ at ~taOAX

’>66I aaqolaou! pauado XIIS!alJJO ss~x suo!lsaado aa!ad tuo.Ls,uoaI XalsaamsH aasldaa XlIsmuaaa II!~ qa!q~

au.n.u oopusasIN uo!II.n-u g9{$V aqz "sial[oldpuns! ooas~laOD pus ~u!qqousXlOON padmsaaa

aql moaj paauammoa uo!lanpoad g6/>66I uI

~q~.qq~!H A~,snpuI

140

120

IRON ORE PRODUCTION

Mt

~I~

100

2O

1950 1955 1960 1965 1970 1975 1980 1985 1990

CALENDARYEARS

i Sources:DME, BMR& ABARE Figure 2.11

Deregulation of the State’s gas market,technology improvements in the use of fine oreand a transport advantage over South Americanproducers mean that the Pilbara is now wellplaced as a DRI producer for the Asian region.

Iron ore value added projects underconsideration or investigation include:

The $4.7 billion Mineralogy Project involving aHBI plant costing $1.65 billion and a $3.1billion DRI and integrated steel plant.

An Australian United Steel Industry (AUSI)proposal involves a $1 billion DRI facility atCape Lambert near Roebourne. The proposalinvolves a concentrator plant, pellet facility anda DRI facility capable of producing almost 3Mtof HBI.

The Kingstream Resources project, a proposedsteel plant at Norngulu, Geraldton isundergoing environmental review.

Outlook

The outlook for the State’s iron ore industry looksbright given the major growth in steelconsumption expected in Asia over the nextdecade.

World steel production is forecast by ABARE togrow by 2.0 percent in 1996. Much of thegrowth is expected to come from China, wheresteel production is expected to rise by 2.3percent in 1996.

Increased steel production will translate intostronger world iron ore demand. ABAREforecasts world iron ore production to increaseby 3 percent and by 2 percent in 1995 and 1996respectively. The increase in world iron oreproduction is expected to come mainly fromBrazil, India and Australia.

iRON ORE EXPORTSTOTAL VALUE : $2,642 MILLION

Japan45.8%

~ --~’~"~Other~ 1.9%

/ \ ~------~Taiwan

k/\jChina17.2% Europe

~}mm~=~=~ 15.4 %S. Korea

15.0%

Source: DME Figure 2.12

With the opportunities for the processing of theState’s iron ore that are presenting themselves, itis not surprising that a number of companies areexamining DRI options.

The world demand for DRI will be governed bytechnological shifts in steel making, particularlyshifts to electric arc furnace steel makingprocesses. Approximately 30 percent of Asiansteel making processes by 2010 are forecast to beelectric arc based, thus dreating a strong demandfor metallics, such as DR1 and pig iron. It is thiswhich is providing impetus for DRI/HBI facilitiesto be established in the Pilbara.


’sluamdolaaap ~u.n, unI~ I~UO!l~malu!jo m~oalsu!~m aql olu! suo!!~ado I~a!maqa

pu~ ~u!mnI~ s,~!I~Jlsnv sal~p!Iosuoa pu~ ~u.rmnI~jo ~a!Iddns lsa~!q g,ppoax aql pm~aaa aa~aamaql aIngaa ~ gV "u°!II!q >$ punoa~ jo sanuaaaa

I~nuu~ tll!~ g66I X~nu~f I moaj as!adaalua apDxppo~ ~ pm~aaa i~ap atLL ’slsa~alu! I~a.rtuaqa~u!mni~ pu~ ~u.rmnlWal~n~q a!aql sau!qmoa

qa!q~ luamaaa:8~ u~ pau~!s ~a!aamv jo Au~dmoDmn!uFtunIV aqa pu~ ~u!u!IN maaso!X~ g6/V66Z uI

SH.LNO~

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aan~.kt) andlno ~u.rmnI~ I~UO!l~u jo luaaaad ~9sluasoadaa uo!lanpo~d ~u!mnl~ ~![~lsnv malsa.&

ol luaaaad 9’g ~q IIaJ uo!lanpoad ~u.rtunI~ :Io anitaaql ’gla:,p~m I~uo!l~malu! uo s:,pols ~u!mn[~

q~!q jo alnsaa ~ s~ ~Ip~tu!~d ’g6/>66~ u! saapd~u.rtunI~ ppoax a~aaa~ ~a~oI ql!ax .IaaaaXOH

’g6/>661 u! sauuol uo!II.rm 6’/- oa luaaaadI puno~ Xq pas~aaau! uo!lanpoad ~u!mnIv

uoDanpoaluI

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00~ -

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00~ -

00~ -

lelJeno ~q enleA ~ uollonpoJd

VNIINn’]v

1994.95 STATISTICS DIGESTThe construction of Alcoa’s hydrated aluminaproject was completed in 1994/95 and the newfacility has recently been commissioned.

ALUMINA PRODUCTION

Mt14"

C3 REST OF AUSTRALIAI []WESTERN AUSTRALIA

12

1(1

4

2

0

2.15

ALUMINA EXPORTSTOTAL VALUE : $1,425 MILLION

Canada13.4%

lran China3.2% 15.5%

Russia6.5%

12.0%Indonesia

6.2% Other8.4%

Figure 2.16

The product is expected to be soldpredominantly into Asian and European specialitymarkets where it is to be used for watertreatment, in paper manufacture and infillers.

Project costs were A$42.9 million and the facilityis expected to produce A$45 million of productper annum.

Alcoa, however, shelved indefinitely its plans forits proposed A$960 million expansion of itsWagerup facilities which would have increasedalumina output from its current level of 1.7million tonnes to 3.3 million tonnes.Environmental approvals for the expansion wereobtained in August 1995. The company believesinternational alumina conditions are currently notright for an investment decision of this magnitudeto be undertaken.

The State’s other alumina producer, Worsley, iscurrently undertaking a feasibility study of a $580million expansion of its refinery. As one of theworld’s three most efficient alumina refineries,the expansion, if given the go ahead, would add650,00 tonnes to its current capacity of 1.5 milliontonnes per annum.

A feasibility study by Australian Fused MaterialsPty Ltd for a A$20 million plant, generating 9000tpa of abrasive grade white fused alumina, isalmost completed and a decision is expectedshortly. This plant would generate revenue ofaround A$13 million per year when fullyoperational.

30

27.5

25

22.5

20

17.5

15 ~

12.5 -

10

7.5

5

2.5-

0-

CONTAINED NICKELProduction & Value by Quarter

kt $A Million, 300

250

200

175

150

125

lOO

75

$o

25

SEP DEC MAR JUN SEP DEC MAR JUN

Figure2.17


s! mdmo agoA iinj uoq~ 96%66[ u! aatt~nJ os!apalaadxa s! lndlno IO:,p!u s,mmg oql pug (0E’E

a:m~!d) g6-~66I u! uo.nanpo~d ia:,Ia!U s,t!I~lsnv jo%96 utql a~om aoj palunoaa~ ~!It~lsnv u.~aasaO6.

’saapd uadmtpaaqlmj plno~x qa!q~ A~aaoaa.~ .~o!tm t ~u!~tls

A.Ilsnpu! ut!ssn~I aql jo l~aaql aql OSl~ st aaaq~L

’~nluaa axouu! AIlsnpu! Ia>Ia!U aql u! oauanlJu! lutgodtu!

put lsa~.ttI aql sl~ tpgutD aa:~oju!aa plno~xluamdolaaap s!q.L ’mnuut :~ad sauuol 000’09

Aiq!ssod plnoa At~ AaS!OA tuoaj uo!lanpoad

Jeq|o

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S.LBOdX "I IOIN

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paatld oslt stq 11 ’oauI put a~p!aquoaltds,tp~utD :~aljt aaanpmd lsa~atI pa!ql s,pI~oax

stq ’ql!aSI 1IN jo luamdoIaaap aql ’AIlUta!J!u~!s

slq~wq~!H A~lsnpuI

’(~I’E a:~n~!d) ta!aamV qlaoNol AlJa!qa lua.a~ .~opu!’etuaJ aq~L ’s:~odxa ano jo

spa!q1 oa~l lnoqt .ioj palunoaat adoana put utd~f’uo!iI.n.u g~g$ ol auaaaad >9 Aq pastaaau!u! s~.todxa Aalsnpu! Ia:,Ia!U stas:~aao jo anita

>6-{66[ uo dn luaaaad 96 stm s!q& ’g6->66~u! uo!II!tU L685 ~u!qataa ’palqnop lSOmlt

uo!!anpo.rd jo anita oqa ’saa!ad Ia~ta!uol s:,IUtq~L ’slanpoad ale~luoauoa put

’011-etu u! Ia:,Ia!U pau!muoa jo souuol {66’E6 qaeaa

lua~apun uo!lanpoad la~a!u s,t!It~asnv

uo!~:mpoa~uI

~IOOl~nO

1994.95 STATISTICS DIGESTachieved from Mt Keith and the improvements inexisting projects. Output will also be boostedwith the reopening of Carr Boyd in 1996. Allthese developments are expected to beaccompanied by firm price at least in the shortterm.

Outlook

Higher nickel prices have stimulated muchinterest in Western Australian nickel projectsincluding:* Mt Keith production expansion from 28,000 to

42,000 tonnes per annum;

Honeymoon Well a $450 million project withproduction rivalling that of Mt Keith;

NICKEL PRICE: SA/tonne

SA Thousand13

11¸

10

JASOND J FMAMJ J ASONDJ FMAMJ89 I 94 I os

MONTHS

Source: LME Cazh, Monthly Average. Figure 2.19

Murrin Muffin (Anaconda) a $450 million

project with a possible nickel production rateof over 30,000 tonnes per annum;

Yakabindie (Dominion Mining-North Ltd), a$400 million project envisaged to produce21,000 tonnes of nickel per annum;

Bulong (Resolute Samantha). A nickel-cobaltdeposit producing about 6,500 tonnes perannum;

Cawse (Centaur Mining) a potential projectbased on a 487,000 tonne nickel resource; and

Maggie Hayes (Forrestania Gold-Gencor Ltd), arelatively small deposit currently beingevaluated involving the development of abacterial oxidisation ore treat process.

NICKEL PRODUCTION

120

100 ¯

80

60¸

40

20

M

r~REST OF AUSTRALIA=~zWESTERN AUSTRALIA

01968 197o 1975 198o 1988 199o

CALENDAR YEARS

Sources: OME, BMR & ABARE Figure 2.20

It must be remembered that while there are manyprojects being assessed, the nickel price ischaracterised by short, sharp price spikesfollowed by long fiat periods. This makes itdifficult for new entrants into the industry,especially those without significant financialbacking.

2.7 Diamonds

Introduction

Diamond production fell by 17 percent in1994/95 as a result of an already oversuppliedmarket; depressed international diamond pricesand demand; and emergence of newinternational diamond producers. However, thevalue of State production increased by about 1percent to $480 million.-Western Australia produces all of Australia’sdiamond production and as usual more than 75percent of diamond sales went to the De Beerscontrolled Central Selling Organisation (CSO),with a majority of the remainder going toBelgium.


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1 94. 5 STATISTICS DIGESTIncreased world wide consumption of zircon,largely as a result of increased Chineserequirements, has lead to the State’s zirconproduction increasing by 37 percent to around480,000 tonnes in 1994/95. On the back ofstronger zircon prices, which increased by morethan 50 percent, and increased production thevalue of zircon increased by 106 percent to $130million in 1994/95.

Despite ilmenite production falling by 7.7 percentto 987,018 tonnes (Figure 2.23), the value oftitanium based products (ie. ilmenite, syntheticmtile, rutile and leucoxene) increasing by 17percent to $338 million in 1994/95. The increasein the further processing of the State’s ilmenite tosynthetic rutile (which increased by 19 percent to396,275 tonnes) more than offset the fall inilmenite production. Nevertheless, WesternAustralia continues to account for more than 85percent of Australia’s ilmenite production (Figure2.24).

PRICE INDEX FOR MINERAL SANDS

INDEX (JUNE 90 = 100)100 ¯

90

70

60

50

J ASOND J FMAMJ J ASOND J FMAM

MONTHS

Source: LME C~h, Monthly Average. Figure 2.21

Construction of BHP’s A$200 million Beenupmineral sands mine was on budget and onschedule after six months of on-site activitywhich began in March 1995. Beenup is expectedto commence production in late 1996 producing600,000 tonnes of heavy minerals, mainlyilmenite, per year.

Rhone Poulenc Australia is undertaking afeasibility study for a proposed A$50 millionproject rare earth processing plant near Pinjarra.The intention is to process up to 23,000 t/a ofmonazite, a by-product of the State’s titaniumminerals industry, to produce 23,000 t/a of rareearth nitrates. Following community concern overthe transport of radioactive waste from Pinjarra toMt Walton, located 100km north-west ofCoolgardie, the level of environmentalassessment for the project was set byGovernment to the highest level, being aEnvironmental Review and Management Program(ERMP). If approval for the plant and wastetransport is achieved, the company plans to beginproduction in two years.

HEAVY MINERAL SAND EXPORTS

TOTAL VALUE : $426 MILLION

Mexico

U.S.A.35.7%

Italy4.8%

9.6%

Netherlands7.9% Other

20.0%

Spain4.3%

On the international front, the Western world’stwo largest producers of titanium will merge tocreate a company with a 24% share of the marketin North America and Europe. IMI, the Britishengineering group, will transfer its titaniumoperations to Titanium Metals Corp, a USproducer. The merged company will havecombined annual sales of A$309.4 million.

The main international rivals to the mergedTimet-IMI operations will be three US producers,Oremet, RMI and Teledyne but their scope toconsolidate may be limited.


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1994.95 STATISTICS DIG[STSalt

The value of production for salt is estimated tohave increased by 4 percent to $155 million, onthe back of a 16.6 percent rise to 7.2 milliontonnes in salt production and improved worlddemand in 1994/95.

Other Developments

Gwalia Consolidated Ltd recently commissionedits new A$17.5 million lithium carbonate plant atGreenbushes. The plant is expected to produce5,000 t/pa of lithium carbonate powder.

Gwalia Consolidated’s A$10 million silica sandsplant north of Kemerton has been recently giventhe green light. Initially the plant will produce400,000 tonnes of silica sands per annum withthe product likely to be shipped to Japan througha new berth at the Bunbury Port.

Western Australia may soon regain its lostgypsum export market worth up to A$30 milliona year. Because of the building boom in Asia,Asian demand for gypsum is growing by around5% per annum and as a result Dampier Salt andPrima Resources are investigating the feasibilityof developing their gypsum deposits at LakeMcCleod, with a view of supplying the Asianmarket, particularly Japan.

CRA have begun a A$4.5 million pre-feasibilitystudy for its Kaolin deposits 65 km east ofNarrogin. It is expected to be completed by theend of 1995.

It is expected that Archaean Gold NL will shortlyconfirm the potential of the Nimbus silver-golddiscovery near Kalgoorlie.


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1994.96 STATISTICS DIGESTdownstream processing. The iron ore explorationeffort has identified potentially developable findsat Homestead and Mt Margaret, to the north ofthe Brockman operation. Detailed exploration isalso being undertaken of the Yandicooginadeposits. A renewed interest in evaluating thepotential for primary banded iron formation istaking place near Roebourne and Mt Gibson.

Western Australia remains the major focus ofexpenditure in Australia for heavy mineral sandsand uranium. Manganese ore and platinoids areother commodities commanding attention; whilstCRA’s kaolin search in the Wheatbelt-DarlingRange is creating significant local interest.

Petroleum Exploration

While there is a continued absence of official

State petroleum exploration data, an estimate hasnevertheless been prepared. The Department ofMinerals and Energy has estimated petroleum

exploration expenditure for Western Australia at$285.8 million in 1994/95, representing about 42

percent of the nation’s total.

Petroleum exploration activity has again beenconcentrated to the North West Shelf, with someinterest in the Bonaparte Basin.

Investment

Private capital investment expenditure in miningin 1994/95 is forecast to increase by about 10percent to $4000 million. Western Australiacontinues to account for more than halfAustralia’s new capital expenditure on mining.

The Department of Resources Developmentadvises that at present projects worth around$7,000 million are either under construction orcommitted in Western Australia.. They alsoestimate that more than $10,000 million ofprojects are under consideration or investigation.

With the exception of the coal and iron ore, allother sectors of the State’s mining and petroleumindustries recorded a rise in employment in1994/95. In particular employment growth wassignificant in the nickel, gold and mineral sandsindustries.

The coal industry recorded a 7.7 percent fall inemployment. This is largely attributed to theclosing of all underground coal operations inCollie in 1994.

Employment in the iron ore sector fell by 6.3percent, largely as a result of BHP’s plannedprogram of staff rationalisation and introductionof more efficient work practices at itsNewman/Port Hedland operations. This resultedin an employment reduction of 955 people.

The number of people employed in thepetroleum industry grew slightly to 1,205 in1994/95.

4.I MPLOYME3tT I51 TIt[MFN[RALS AND P[TROLEUMINDUSTRY

Statistics compiled from industry returns showeda 4.5 percent employment increase in the State’smineral and petroleum industry to 37,147 peoplein 1994/95.


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1994.95 STATISTICS DIGNTABLE 4.1 (cont) QUANTITY AND VALUE OF MINERALS AND PETROLEUM

1993-94 1994-95

MINERAL UNIT QUANTITY VALUE ($A) QUANTITY VALUE ($A)

INDUSTRIAL PEGMATITE MINERALSFelspar t 22,167 864,560 52,515 1,933,436

IRON OREDomestic t 6,049,806 156,792,953 6,628,986 152,208,376

Exported t 113,640,430 2,708,362,762 126,498,792 2,642,098,607

TOTAL IRON ORE 119,690,236 2,865,155,715 133,127,778 2,794,306,983

LIMESAND-LIMESTONE-DOLOMITEDolomite tLimesand-Limestone t

TOTAL LIM ESAND-LIMESTON E-DOLOMITE

2,500 25,000 3,950 39,500

2,147,271 14,764,597 2,192,241 14,607,207

14,789,597 14,646,707

MANGANESE ORE

NICKEL INDUSTRYCobalt by-productNickel ConcentratePalladium by-productPlatinum by-product

TOTAL NICKEL INDUSTRY

PEAT

PETROLEUMCondensateCrude OilLNGNatural Gas

TOTAL PETROLEUM

tt

kgkg

315,786 (r) 42,010,988 (r) 71,912 8,538,956

370 19,954,659 786 48,072,829

563,025 458,620,550 733,460 897,101,422373 2,576,698 514 3,100,98864 987,882 121 1,412,150

482,139,789 949,687,389

813 60,380 960 66,992

kl 2,350,031 348,711,923 2,634,932 398,338,386kl 5,327,567 815,332,844 9,901,184 1,559,648,560

MMBtu 296,361,819 1,015,679,244 356,107,625 1,262,512,586’000m3’ 4,456,991 413,371,442 5,332,987 440,991,615

2,593,095,453 3,661,491,147

SALT t 6,155,387

SILICA-SILICA SANDSilica t 78,235Silica Sand t 490,161

TOTAL SILICA-SILICA SAND

SILVER kg 75,207 (r)

TALC t 141,057

TIN-TANTALUM-LITHIUMSpodumene t 47,787 (r)

Tantalite t 246 (r)

Tin Metal t 104 (r)TOTAL TIN-TANTALU M-LITHIU M

149,179,209 7,176,351 155,144,299

788,096 82,046 820,4774,444,654 532,439 4,658,3365,232,750 5,478,813

15,777,870 (r) 57,912 12,231,206

10,043,030 112,724 8,517,234

10,245,802 71,875 11,561,445

14,278,830 379 31,839,882790,621 457 3,109,397

25,315,253 46,510,724

TOTAL VALUE 12,623,902,858 (r) 13,870,017,613 (e)

Note: Quantities used in this table only apply to Minerals and Petroleum covered by the following Acts:Mining Act 1978, the Petroleum Act 1967Petroleum (Submerged Lands) Act 1982Relevant State Agreement Acts

(a) Also known as synthetic rutile(e) Estimate(r) Revised from previous edition


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1994.9 STATISTICS DIC EST

TABLE 5.1 QUANTITY AND VALUE OF MINERALS AND PETROLEUM BY LOCAL GOVERNMENT AREA

Local Quantity Metallic Value

Mineral Government Area Tonnes Content $A Ref

BASE METALSCu Tonnes

Copper By-Product Coolgardie 4,489.494 8,583,549 (a),(b)

Cu %

Copper Concentrates East Pilbara 19,556 13.89 5,543,205

Meekatharra 18,633 19.16 5,940,519

Yalgoo 45,319 19.82 24,096,515

83,508 35,580,239 (a)

Cu Tonnes

Copper Cathode East Pilbara 7,312.621 26,167,494 (a)

Total Copper 70,331,282

Lead Derby-West Kimberley

Zinc Derby-West Kimberley

Yalgoo

Pb %

26,700 79.61 8,932,364 (a)

Zn %

116,055 60.21 50,282,257

109,717 41.02 32,311,507

225,772 82,593,764 (a)

TOTAL BASE METALS 161,857,410

BAUXITE - ALUMINA

Alumina Boddington 1,661,387 352,042,194

Harvey 1,469,280 313,108,985

Murray 3,009,445 642,273,916

Serpentine-Jarrahdale 1,766,875 377,179,215

7,906,987 1,684,604,310 (c)

CLAYS

ARapulgite Mullewa 18,796 4,662,524

Clay Shale Collie 13,921 169,475

Fire Clay ChiRering 31,778 38,134

(a)

(a)

(d)

Kaolin Bridegetown-Greenbushes

Goomalling

3,361 224,472

864 25,920

4,225 250,392 (d)

White Clay

TOTAL CLAYS

COAL

Swan 61,599 615,990

130,319 5,736,515

Collie 5,863,747 265,328,700

(d)

(e)

CONSTRUCTION MATERIALS

Aggregate Exmouth 2,321 26,684

Kalgoorlie-Boulder 70,632 423,792


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TABLE 5.1 (cont) QUANTITY AND VALUE OF MINERALS AND PETROLEUM BY LOCAL GOVERNMENT AREA


Mineral Government Area Tonnes Content SA Ref

CONSTRUCTION MATERIALS (cont)

Sand (cont) Swan

Wyndham-East Kimberley

Yilgarn

189 654

6,400 38,400

4,562 19,532

1,927,572 9,090,488

Sandstone Derby-West Kimberley 92 21,823

TOTAL CONSTRUCTION MATERIALS 12,411,893 (d)

carats

DIAMOND Wyndham-East Kimberley 23,931,476 480,031,071 (a)

DIATOMITE Dandaragan 9,636 77,062

DIMENSION STONE

Black Granite Dundas 571 171,408 (d)

GEM, SEMI-PRECIOUS AND ORNAMENTAL STONE kg

Agate East Pilbara 10,287 14,812

kg

Chrysoprase 236,990 1,395,607

kg

Malachite Meekatharra 5,561 19,639

kg

Variscite Meekatharra 441

TOTAL GEM, SEMI-PRECIOUS AND ORNAMENTAL STONE

3,996

1,434,054 (e)

GOLD Au kg

Boddington 16,742.669 279,247,760

Coolgardie 23,294.237 388,546,896

Cue 6,279.621 104,990,739

Dundas 3,046.728 50,808,746

East Pilbara 13,491.132 225,077,223

Halls Creek 161.325 2,770,176

Kalg.-Boulder 43,086.274 717,870,903

Laverton 8,387.222 139,730,880

Leonora 22,721.727 379,046,399

Meekatharra 18,348.705 306,382,107

Menzies 1,157.899 19,296,400

Mt Magnet 5,492.381 91,731,439

Sandstone 3,513.088 58,464,460

Wiluna 3,035.081 50,616,873

Yalgoo 2,880.800 48,090,896

Yilgarn 15,599.800 259,739,001

187,238.689 3,122,410,898 (f)


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Local Quantity Metallic ValueMineral Government Area Tonnes Content SA Ref

HEAVY MINERAL SANDS (cont)

Rutile (cont)TiO2 Tonnes

Dandaragan 39,772 37,746 19,287,420

107,782 101,374 56,131,247

ZrO2 Tonnes

Bunbury City 25,416 16,522 6,600,093

Capel 84,011 54,608 21,002,423

Carnamah 306,836 200,293 86,175,683

Dandaragan 60,789 39,663 15,993,550

477,052 311,086 129,771,749

474,741,846

Zimon

TOTAL HEAVY MINERAL SANDS

INDUSTRIAL PEGMATITE MINERALS

Felspar Mukinbudin

Port Hedland

6,084 220,763

46,431 1,712,673

62,515 1,933,436

IRON ORE

Domestic Ore

Exported Ore

Ashburton

East Pilbara

Ashburton

East Pilbara

Yilgarn

Fe%

31,791 63.00 1,178,100

6,597,195 62.37 151,030,276

6,628,986 152,208,376

Fe%

77,603,829 61.28 1,563,235,685

48,180,938 62.68 1,063,966,568

714,025 63.81 14,896,354

126,498,792 2,642,098,607

(a)

(a)

(h)

TOTAL IRON ORE 133,127,778 2,794,306,983 (a)

3,950 39,500

LIMESAND - LIMESTONE-DOLOMITE

Dolomite Lake Grace

Limesand - Limestone 1,713,000 9,067,000

31,495 316,085

75,538 1,133,056

442 7,264

48,796 1,027,868

7,721 23,162420 23,000

615 52,275

314,214 2,957,497

Cockburn

Dandaragan

Dundas

Exmouth

Gingin

Irwin

Roebourne

Shark Bay

Wanneroo

TOTAL LIMESAND-LIMESTONE 2,196,191 14,646,707 (d)

Mn%

MANGANESE ORE East Pilbara 71,912 50.65 8,538,956 (a)


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SALT (cont)

SILICA - SILICA SAND

Silica

Wyalkatchem 159 12,720

Yilgarn 97,468 3,940,000

7,176,351 155,144,299 (a)

Moora 82,046 820,477 (a)

Silica Sand

TOTAL SILICA - SILICA SAND

SILVER: BY-PRODUCT

TALC

TIN - TANTALUM - LITHIUM

Spodumene

Tantalite

Tin

Canning 56,289 619,179 (a)

Cockburn 273,946 3,013,406 (a)

Collie 160 1,760 (a)

Coolgardie 113,571 278,247 (a)

Swan 62,405 578,303 (a)

Wanneroo 26,068 167,441 (a)

614,485 5,478,813

Ag kg

Coolgardie 198.559 46,300 (a),(b)

Meekatharra 3,313.401 708,157 (a),(I)

State-Wide 27,524.565 5,712,415

Yalgoo 26,875.312 5,764,334 (a),(I)

57,911.837 12,231,206

Meekatharra 13,095 916,650

Three Springs 99,629 7,600,584

112,724 8,517,234 (e)

Li20 %

Bridegetown-Greenbushes 71,875 5.06

Ta205 kg

Bridegetown-Greenbushes 240 126,000

East Pilbara 139 72,975

379 198,975

Sn Tonnes

Bridegetown-Greenbushes n.ap. 444

East Pilbara n.ap. 13

457

VALUE OF MINERALS

VALUE OF PETROLEUM

VALUE OF GOLD

TOTALVALUE

11,561,445 (a)

24,595,065

7,244,817

31,839,882 (a)

2,999,997

109,400

3,109,397 (a)

7,086,115;568

3,661,491,147

3,122,410,898

13,870,017,613


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TABLE 6.1 ROYALTY RECEIPTS

1993-94 1994-95 1994-95 G Row-rH

Mineral $A $A $A %

NICKEL

Cobalt by-product 328,938.71 1,034,277.00 705,338.29 214.4

Nickel 7,908,429.93 17,680,335.11 9,771,905.18 123.6

Palladium by-product 46,801.09 66,577.55 19,776.46 42.3

Platinum by-product 20,395.30 29,588.08 9,192.78 45.1

TOTAL NICKEL INDUSTRY 8,304,565.03 18,810,777.74 10,506,212.71 126.5

PEAT 1,919.08 2,033.25 114.17 5.9

PETROLEUM

Condensate 6,362,978.09 10,320,097.61 3,957,119.52 62.2

Uquified Natural Gas 20,387,570.67 35,094,125.79 14,706,555.12 72.1

Natural gas 9,964,699.21 14,506,869.12 4,542,169.91 45.6

Oil 36,171,071.09 53,815,903.76 17,644,832.67 48.8

TOTAL PETROLEUM 72,886,319.06 113,736,996.28 40,850,677.22 56.0

SALT 1,349,803.55 1,545,680.88 195,877.33 14.5

SILICA SAND 279,142.27 292,861.21 13,718.94 4.9

SILVER 389,256.91 262,109.62 (127,147.29) (32.7)

TALC 76,629.00 32,078.00 (44,551.00) (58.1)

TIN-TANTALUM-LITHIUM

Spodumene 413,569.72 552,496.96 138,927.24 33.6

Tantalite 278,015.95 710,723.76 432,707.81 155.6

Tin 21,229.84 58,709.19 37,479.35 176.5

TOTAL TIN-TANTALUM-LITHIUM 712,815.51 1,321,929.91 609,114.40 85.5

TOTAL ROYALTY RECEIPTS

IRON ORE ADDITONAL RENTAL

TOTAL REVENUE

334,078,709.71 364,049,535.18 29,970,825.48 9.0

25,225,946.18 26,435,373.32 1,209,427.14 4.8

359,304,655.89 390,484,908.50 31,180,252.62 8.7



TABLE 7.1 PERSONS EMPLOYED IN THE WA MINERALS & PETROLEUM INDUSTRIES AS AT JUNE 30 1995

MINERAL/Company PROJECT 1993-94 1994-95

BASE METALS

BHP Minerals Ltd 160 153

Murchison Zinc Co. Pty Ltd 231 261

Western Mining Corporation Ltd 130 129

TOTAL BASE METALS 521 543

Cadjebut

Golden Grove

Nifty

BAUXITE - ALUMINA

Alcoa of Australia Ltd

Australian Fused Materials Pty Ltd

Worsley Alumina Pty Ltd

TOTAL BAUXITE - ALUMINA

Del Park-Huntley- Pinjarra 1,727 1,773

Jarrahdale/Kwinana 1,850 1,818

Wagerup/Willow Dale 941 930

East Rockingham 34 61

Boddington/Worsley 1,205 1,238

5,757 5,820

COAL

Griffin Coal Mining Co. Ltd

Western Collieries Ltd

TOTAL COAL

Chicken Creek 55 0

Muja 396 367

Central Services 29 28

Western #2 4 0

Western #5 336 362

820 757

DIAMOND

Argyle Diamond Mines Pty Ltd

Poseidon Ltd

TOTAL DIAMOND

Lake Argyle 1,047 1,195

Bow River 103 119

1,150 1,314

GOLD

Australian Resources & Mining Co. NL

Aztec Mining Co Ltd

Burmine Ltd

Central Norseman Gold Corp. NL

Coolgardie Gold NL

Dominion Mining Ltd

Goldfan Ltd

Great Central Mines NL

Hampton Australia Ltd

Hedges Gold Pty Ltd

Kalgoorlie Consolidated Gold Mines Pty Ltd

Gidgee 137 109

Mt McLure 145 191

Bounty 332 314

Copperhead 107 116

Central Norseman 258 277

Greenfield 140 115

Bannockburn 99 2

Meekatharra 183 138

Mt Morgans 165 254

Three Mile Hill 170 197

Bronzewing 174 237

Jubilee 232 134

Hedges 90 89

Kalgoorlie 1,313 1,405


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TABLE 7.1 (cont) PERSONS EMPLOYED IN THE WA MINERALS & PETROLEUM INDUSTRIES AS AT JUNE 30 1995

MINERAL/Company PROJECT 1993-94 1994-95

HEAVY MINERAL SANDS

Cable Sands Pty Ltd

Mineral Deposits Ltd

RGC Mineral Sands Pty Ltd

TiWest Pty Ltd

Westralian Sands Ltd

All Other Operators

TOTAL HEAVY MINERAL SANDS

Bunbury 264 285

Beenup 0 46

Capel 231 213

Eneabba 338 320

Narngulu 184 258

Chandala-Muchea 147 197

Cooljarloo 105 122

Capel 375 396

30 51

1,674 1,888

IRON ORE

BHP Iron Ore (Goldsworthy) Ltd

BHP Iron Ore (Jimblebar) Ltd

BHP Iron Ore Ltd

BHP Minerals Ltd

Hamersley Iron Pty Ltd

Kooyanobbing Iron Pty Ltd

Robe River Mining Co. Pty Ltd

TOTAL IRON ORE

Yarrie 157 152

Jimblebar 68 74

NimingarraJPort Hedland 328 321

Newman/Port Hedland 2,608 1,653

Yandicoogina 95 159

Yampi 76 0

Brockman 105 121

Dampier 910 1,236

Hismelt - Kwinana 200 91

Marandoo 115 154

Paraburdoo 600 611

Tom Price 769 849

Cockatoo Island 0 32

Koolyanobbing 0 31

Pannawonica/Cape Lambert 617 742

6,648 6,226

NICKEL

Outokumpu Australia Ltd

Western Mining Corporation Ltd

TOTAL NICKEL

Forrestania 204 242

Kalgoorlie Nickel Smelter 366 442

KambaldaJBlair 1,303 1,214

Kwinana Refinery 359 520

Leinster 553 1,826

Mt Keith 1,059 434

3,844 4,678

PETROLEUM PRODUCTS

Ampolex Ltd

Apache Energy Ltd

Wandoo 14 14

Harriet/Rosette 140 123


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1994-95 STATISTICS DIGESTTABLE 8.1 PRINCIPAL MINERAL & PETROLEUM PRODUCERS 1994-95

address, telephone number: project

BASE METALS

Copper

Murchison Zinc Co. Pry Ltd, c/o Normandy Mining Ltd, 100 Hutt St, Adelaide, S.A., (08) 303 1700: Golden Grove.

Newcrest Mining Ltd, 600 St Kilda Rd, Melbourne Vic, 3004, (03) 9522 5333: Telfer.

Western Mining Corp. Ltd, 250 St Georges Terrace, Perth 6000, (09) 442 2000: Nifty, Kambalda.

Lead - Zinc

Murchison Zinc Co. Pry Ltd, c/o Normandy Mining Ltd, 100 Hutt St, Adelaide 5000, S.A., (08) 303 1700: Golden Grove.

Westmet Metals Zinc NL, PO Box 534, Broome 6725, (091) 910 245:Cadjebut.

BAUXITE - ALUMINA

Alumina

Alcoa of Australia (WA) Ltd, cnr Davey & Marmion Sts Booragoon 6154, (09) 316 5111 : Del Park, Jarrahdale, Willowdale.

Worsley Alumina Pty Ltd, PO Box 50, Boddington WA 6390, (098) 83 8005: Boddington.

CLAY

Attapulgite

Mallina Holdings Ltd, 249 Stirling Hwy, Claremont 6010, (09) 384 7077: Lake Nerramyne.

Clay Shale

Western Collieries Ltd, 40 The Esplanade, Perth 6000, (09) 327 4511: Collie.

Kaolin

Gwalia Consolidated Ltd, PMB 16, West Perth 6872, (09) 481 1988: Greenbushes.

White Clay

Metro Brick, Locked Bag 100, Midland 6056, (09) 250 2111: Middle Swan.

COAL

Griffin Coal Mining Co. Ltd, 28 The Esplanade, Perth 6000, (09) 325 8155: Collie.

Western Collieries Ltd, 40 The Esplanade, Perth 6000, (09) 327 4511: Collie.

CONSTRUCTION MATERIALS

Aggregate

The Readymix Group (WA), 75 Canning Hwy, Victoria Park 6100, (09) 472 2000: Boodarrie, Boulder, Oscar Range.

Gravel

Vinci and Sons Pty Ltd, Lot 3 Pickering Brook Rd, Pickering Brook 6076, (09) 293 8295: Pickering Brook.

Rock

County B.S., c/o Pioneer Concrete, 123 Burswood Rd, Victoria Park 6100, (09) 311 8811 : Yeeda Station.


1994.95 STATISTICS DIG[STTABLE 8.1 (cont) PRINCIPALMINERAL & PETROLEUM PRODUCERS 1994-95


CONSTRUCTION MATERIALS (cont)

Sand

Amatek Ltd, 1 Newburn Rd, Kewdale 6104, (09) 353 3030: Gnangarra, Jandakot.

Pioneer Concrete, 123 Burswood Rd, Victoria Park 6100, (09) 311 8811: Coolgardie.

The Readymix Group (WA), 75 Canning Hwy, Victoria Park 6100, (09) 472 2000: Comet Vale, Maitland, Nickol Bay, Pinnacles,

Rocklea, Sandy Creek, Sullivan’s Creek, Turner River, Warrawanda Creek, Widgiemooltha.

DIAMOND

Argyle Diamond Mines, 2 Kings Park Rd, West Perth 6005, (09) 482 1166: Argyle.

Poseidon Bow River Diamond Mines Ltd, 100 Hutt St, Adelaide, S.A., (08) 303 1700: Bow River.

DIMENSION STONE

Black Granite

Fraser Range Granite NL, 164 Burswood Rd., Victoria Park 6010, (09) 470 4487: Mt Malcolm.

Quartz Rock

Commercial Minerals Ltd, 26-28 Tomlinson Rd, Welshpool 6106, (09) 362 1411: Mukinbudin.

GEM, SEMI-PRECIOUS & ORNAMENTAL STONE

Chrysoprase

Gembank Ltd, 26-28 King St, Perth 6000, (09) 481 1401: Yerilla,

GOLD

Aberfoyle Ltd, 525 Collins St, Melbourne 3000, (03) 9270 6666: Bardoc-Davyhurst.

Australian Resources & Mining Co. NL, 20 Berry St, North Sydney, NSW 2060, (02) 955 1722: Gidgee, Mt McClure.

Burmine Ltd, Copperhead Mine, Bullfinch 6484, (090) 49 5066: Frasers, Copperhead.

Camelot Resources Ltd, 46-50 Kings Park Rd, West Perth 6005, (09) 321 0616: Mt Gibson.

Centaur Mining and Exploration Ltd, 580 St Kilda Rd, Melbourne Vic. 3004, (03) 9276 7870: Lady Bountiful Extended.

Central Norseman Gold Corp. NL, PO Box 56, Norseman 6443, (090) 39 1101: Central Norseman.

Coolgardie Gold NL, 56b Bayley St, Coolgardie 6429, (090) 26 6132: Bayley’s Reward-Greenfields.

Consolidated Resources NL, 30 Ledgar Rd, Balcatta 6021, (09) 345 1588: Nevoria.

Croesus Mining NL, 39 Porter St, Kalgoorlie 6430, (090) 91 2222: Binduli.

Dominion Mining Ltd, 10 Richardson St, West Perth 6005, (09) 426 6400: Mt Morgans.

Eltin Minerals Pty Ltd, 74 Gt Eastern Hwy, Sth Guildford 6055, (09) 334 8888: Grosmont-Norris.

Glengarry Resources NL, 646 Murray St, West Perth 6005, (09) 322 4929: Theil Well.

Gold Mines of Australia Ltd, 161 Great Eastern Hwy, Belmont 6104, (09) 479 0222: Reedy, Youanmi.

Great Central Mines NL, 580 St Kilda Rd, Melbourne 3004, (03) 9276 7888: Bronzewing.

Hampton Australia Ltd, 100 Hutt St, Adelaide, S.A., (08) 236 1700: Jubilee.

Hedges Gold Pty Ltd, Williams Rd, Boddington 6390, (09) 538 4512: Hedges.

Herald Resources Ltd, 40 Kings Park Rd, West Perth 6005, (09) 322 2788: Sandstone, Three Mile Hill.

Kalgoorlie Consolidated Gold Mines Pty Ltd, Fimiston, Kalgoorlie 6430, (090) 22 1100: Super Pit, Mt Charlotte, Mt Percy.


1994.95 STATISTICS DIGESTTABLE 8.1 (cont) PRINCIPAL MINERAL & PETROLEUM PRODUCERS 1994-95


GOLD (cont)

Kitchener Mining NL, 411 Collins St, Melbourne 3000, (03) 9629 6888: Bamboo Creek, Normay.

Lynas Gold NL, 40 Kings Park Rd, West Perth 6005, (09) 322 2788: Lynas Find.

Metall Mining Corp of Aust Pty Ltd, cnr Throssell & Forrest Sts. Kalgoorlie 6430, (090) 21 1766:: Round Dam, West Black Flag.

Mining Corporation of Australia Ltd, 229 Stirling Hwy, Claremont 6010, (09) 383 4321 : Mt Pleasant-Golden Kilometre.

Mt Edon Gold Mines (Aust) NL, 30 Ledgar Rd, Balcatta 6021, (09) 345 1588: Tarmoola-King Of The Hills.

Mt Burgess Gold Mining Co NL, 533 Hay St Perth 6000, (09) 221 1777, Butcher Well - Yundamindera.

National Resources Exploration Ltd, 106 Briggs St, Welshpool 6106, (09) 470 3555: Gullewa.

Newcrest Mining Ltd, 179 Gt Eastern Hwy, Belmont 6401, (09) 270 7070: New Celebration, Ora Banda, Orban JV, Teller.

North Ltd, 476 St Kilda Rd, Melbourne Vic 3004, (03) 9207’ 5111: Kanowna Belle, Peak Hill.

Orion Resources NL, 16 Ogilvie Rd, Mt Pleasant 6153, (09) 364 8355: Burbidge-Great Victoria, Yilgarn Star.

Pancontinental Mining Ltd, PO Box 1161, Kalgoorlie 6430, (090) 24 2000: Kundana, Paddington.

Perilya Mines NL, 278 Stirling Hwy, Claremont 6010, (09) 385 2400: Fortnum.

Placer Pacific Ltd, PO Box 33, Laverton WA 6440, (090) 31 3111 : Granny Smith.

Plutonic Resources Ltd, 100 Miller St, Nth Sydney 2060 (02) 9900 5000: Darlot, Lawlers, Plutonic, Sir Samuel-Bellevue.

Posgold Ltd, 100 Hutt St, Adelaide S.A., (08) 303 1700: Big Bell, Forrestania-Bounty, Golden Crown, Kaltails.

Precious Metals Australia Ltd, 37 St Georges’ Tce, Perth 6000, (09) 221 3711: Palm Springs.

Ramsgate Resources Ltd, 229 Stirling Highway, Claremont 6010, (09) 383 4321: Grace Darling, Mt Monger-Randalls.

Resolute Samantha Ltd, 28 The Esplanade, Perth 6000, (09) 261 6100: Bullabulling, Chalice, Higgginsville, Marymia Hill.

St Barbara Mines Ltd, 28 The Esplanade, Perth 6000, (09) 324 6350: Bluebird.

Sons of Gwalia NL, 16 Parliament PI, West Perth 6005, (09) 481 1988: Barnicoat, Marvel Loch-Southern Cross, Sons of

Gwalia.

Tectonic Resources Ltd, 100 Hay St, Subiaco 6008, (09) 388 3872: Mt Dimer.

Western Mining Corp. Ltd, 250 St Georges Terrace, Perth 6000, (09) 442 2000: Emu-Leinster, Hill 50-Mt Magnet, Kambalda-St

Ives.

Westgold Resources NL, 108 St Georges’ Tce, Perth 6000, (09) 324 2877: Tuckabianna.

Wiluna Mines Ltd, 10 Ord St West Perth 6005, (09) 481 2050: Jundee, Wiluna.

Worsley Alumina Pty Ltd, PO Box 48, Boddington 6390, (098) 83 8260: Boddington.

GYPSUM

H.B. Brady & Co. Pty Ltd, PO Box 42, Bayswater 6053, (09) 279 4422: Lake Brown.

Lake Hillman Mining Pty Ltd, Kalannie 6468, (096) 66 2045: Lake Hillman.

Swan Portland Cement Ltd, Burswood Rd, Rivervale 6103, (09) 361 8822: Lake Hillman.

Westdeen Holdings Pty Ltd, 7 Armstromg Rd, Applecross 6153, (09) 364 4951: Lake Cowcowing.

HEAVY MINERAL SANDS

Garnet Sand

GMA Garnet Pty Ltd, PO Box 188, Geraldton 6530, (099) 23 3644: Port Gregory.

Ilmenite, Rutile, Zircon, Leucoxene & Monazite

Cable Sands (WA) Pty Ltd, PO Box 133, Bunbury 6230, (097) 21 4111: Busselton, Jangardup, Waroona.


1994.95 STATISTICS DIGESTTABLE 8.1 (cont) PRINCIPAL MINERAL & PETROLEUM PRODUCERS 1994-95


HEAVY MINERAL SANDS (cont)

RGC Mineral Sands, PO Box 62, Geraldton 6530, (099) 568 822: Capel, Eneabba North, Eneabba West, Narngulu.

TiWest Pty Ltd, 1 Brodie Hall Dve, Bentley 6102, (09) 365 1390: Cooljarloo, Chandala.

Westralian Sands Ltd, PO Box 96, Capel 6271, (097) 27 2002: Yoganup, Yoganup Extended.

INDUSTRIAL PEGMATITE MINERALS

Felspar

Commercial Minerals Ltd, 26-28 Tomlinson Rd, Welshpool 6106, (09) 362 1411: Mukinbudin, Pippingarra.

IRON ORE

BHP Iron Ore (Goldsworthy) Ltd, 200 St George’s Tce, Perth 6000, (09) 320 4444: Nimingarra, Yarrie.

BHP Iron Ore (Jimblebar) Ltd, 200 St George’s Tce, Perth 6000, (09) 320 4444: Jimblebar.

BHP Iron Ore Ltd, 200 St George’s Tce, Perth 6000, (09) 320 4444: Newman, Yandicoogina.

Channar Mining Pty Ltd, 152 St George’s Tce, Perth 6000, (09) 327 2327: Channar.

Hamersley Iron Pty Ltd, 152 St George’s Tce, Perth 6000, (09) 327 2327: Brockman, Marandoo, Tom Price, Paraburdoo.

Koolyanobbing Iron Pty Ltd, 56 Adelaide Tce, Perth WA 6000, (09) 268 3388: Cockatoo Island, Koolyanobbing.

Robe River Iron Associates, 12 St George’s Tce, Perth 6000, (09) 421 4747: Pannawonica.

LIMESAND - LIMESTONE

Cockburn Cement Ltd, Russell Rd, East Munster 6166, (09) 411 1000: Cockburn Sound, Coogee.

Limestone Building Blocks Co. Pry Ltd, Hopkins Rd, Carabooda 6033, (09) 407 5005: Nowerup.

Loongana Lime Pty Ltd, PO Box 808, Kalgoorlie 6430, (090) 21 8055: Loongana.

Swan Portland Cement Ltd, Burswood Rd, Rivervale 6103, (09) 361 8822: Wanneroo.

Westdeen Holdings Pty Ltd, 7 Armstrong Rd, Applecross 6153, (09) 364 4951: Dandaragan, Gingin, Irwin, Yanchep.

MANGANESE

Portman Mining Ltd, 256 Adelaide Tce, Perth 6000, (09) 268 3333: Mt Sydney.

Valiant Consolidated Ltd, 250 St Georges’ Tce, Perth 6000, (09) 321 3797: Pearana.

NICKEL

Outokumpu Australia Pty Ltd, 141 Burswood Rd., Burswood 6100, (09) 472 3144: Forrestania

Western Mining Corp. Ltd, 250 St Georges Terrace, Perth 6000, (09) 442 2000: Blair, Carnilya Hill, Kambalda, Leinster, Mt

Keith.

PEAT

Peat Resources of Australia Pty Ltd, 665 Welshpool Rd, Wattle Grove 6107, (09) 453 6777: Manjimup.

PETROLEUM

Ampolex Ltd, 250 St George’s Tce, Perth 6000, (09) 429 3200: Wandoo

Apache Energy Ltd, 256 St Georges’ Tce, Perth WA 6000, (09) 422 7222:Campbell, Harriet, Rosette, Sinbad & Tanami.

BHP Petroleum Pty Ltd, 221 St Georges Tce, Perth 6000, (09) 426 5600: Griffin


1994.95 STATISTICS DI ESTTABLE 8.1 (cont) PRINCIPALMINERAL & PETROLEUM PRODUCERS 1994-95


PETROLEUM (cont)

Consolidated Gas Pty Ltd, 325 Chumhill Ave, Subiaco 6008, (09) 380 4920: Woodada.

Discovery Petroleum NL, 31 Ventnor Ave, West Perth WA, 6005, (09) 480 4100: Mt Hornet.

Santos Ltd, 39 Grenfell St, Adelaide SA 5001, (08) 224 7162: Blina, Boundary, Lloyd, Sundown, West Terrace.

Sagasco Resources Ltd, 60 Hindmarsh Sq, Adelaide SA 5000, (08) 235 3737: Beharra Springs, Tubridgi.

West Aust. Petroleum Pty Ltd (WAPET), QV1,250 St Georges Tce, Perth 6000, (09) 263 6000: Barrow Island, Cowle, Crest,

Dongara, Mondara, Roller-Skate, Saladin, Yammaderry.

Western Mining Corp. Ltd, 250 St Georges Terrace, Perth 6000, (09) 442 2000: Chervil, North Herald, South Pepper, Airlie Is.

Woodside Offshore Pet. Pty Ltd, 1 Adelaide Tce, Perth 6000, (09) 224 4111 : Cossak/Wanaea, Goodwyn, North Rankin.

SALT

Cargill Australia Ltd, PO Box 420, Port Hedland 6721, (091) 40 1255: Port Hedland.

Dampier Salt (Operations) Pry Ltd, 152-158 St George’s Tce, Perth 6000, (09) 327 2299: Dampier, Lake Macleod.

Shark Bay Salt Joint Venture, 22 Mount St, Perth 6000, (09) 322 4811: Useless Loop.

WA Salt Koolyanobbing Pty Ltd, Cockburn Rd, Hamilton Hill 6163, (09) 430 5495: Lake Deborah East Pink Lake.

SILICA - SILICA SAND

Silica

Simcoa Operations Pty Ltd, P.O Box 1389, Bunbury 6231, (097) 912 588: Dalaroo.

Silica Sand

ACI Operations Pty Ltd, 35 Baille Rd, Canning Vale 6155, (09) 455 1111 : Lake Gnangara.

Amatek Ltd, 1 Newbum Rd, Kewdale 6104, (09) 353 3030: Jandakot, Gnangara.

Boral Resources WA Ltd, 136-138 Gt Eastern Hwy, South Guildford 6055, (09) 279 0000: Jandakot.

The Readymix Group (WA), 75 Canning Hwy, Victoria Park 6100, (09) 472 2000: Jandakot.

Western Mining Corp. Ltd, 250 St Georges Terrace, Perth 6000, (09) 442 2000: Mt Burgess.

TALC

Gwalia Minerals NL, PMB 16, West Perth 6872, (09) 481 1988: Mt Seabrook.

Western Mining Corp. Ltd, PO Box 116, Three Springs 6519, (099) 54 5047: Three Springs.

TIN - TANTALUM - LITHIUM

Spodumene

Lithium Australia Ltd, PMB 16, West Perth 6872, (09) 481 1988: Greenbushes.

Tantalite - Tin

Goldrim Mining Australia Ltd, 562 Pacific Hwy, Belmont NSW 2280, (049) 477 288: Wodgina.

Gwalia Consolidated Ltd, PMB 16, West Perth 6872, (09) 481 1988: Greenbushes.

Pan West Tantalum Pty Ltd, 1 Alfred St, Sydney NSW 2000, (02) 934 8888: Wodgina.


ABBREVIATIONS, RI FI RI NCIX UNITS AND CONVI RSION FACTORS

As the document makes use of abbreviations and references, an explanation of each has been includedbelow. A conversion table, relating the units by which various commodities are measured, has alsobeen provided.

AIIIIRI VIATIONScons concentrates f.o.t, free on truckf.o.b, free on board n.a. not availablef.o.r, free on rail n.ap. not applicable$A Australian Dollar $US United States DollarABS Australian Bureau of Statistics LME London Metals ExchangeAFR At~,stralian Financial Review BMR Bureau of Mineral ResourcesABARE Australian Bureau of Agricultural and Resource Economics

RI2FI RI2NCI SN.A. Not available for publication.(a) Estimated f.o.b value.(b) Metallic by-product of nickel mining.(c) Value based on the average Australian Value of Alumina as published by the ABS.(d) Value at works.(e) Estimated ex-mine value.(f) Value based on monthly production and average gold price of that month as supplied by

GoldCorp.(g) Estimated f.o.t value.(h) Estimated f.o.r value.(i) Estimated f.o.b value based on the current price of nickel containing products.(j) Delivered value.(k) Metallic by-product of copper mining.(r) Revised from previous edition.

UNITS AND CONVF, RSION FACTORS

Metric Unit SymbolMass 1 gram (g)

1 kilogram (kg)i tonne (t)1 tonne (t)

Volume I kilolitre (kl)1 kilolitre (kl)1 cubic metre (m3)

Energy 1 kilojoule (kJ)1 gigajoule (GJ)1 petajoule (PJ)

Prefix: kilo (k) 103mega (M) 106giga (G) 109tera (T) 1012peta (P) 1015

Imperial Unit= 0.032151 troy (fine) ounce (oz)= 2.20462 pounds (lbs)= 1.10231 United States short ton (1 U.S. short ton = 2,000 lbs)= 0.98421 United Kingdom long ton (1 U.K. long ton = 2,240 Ibs)

= 6.28981 barrels (bbls)= 1 cubic metre (m3)

= 35.3147 cubic feet (ft3)

= 0.94781 British Thermal Units (Btu)= 0.94781 million British Thermal Units (MBtu)= 0.94781 million million British Thermal Units (MMBtu)

DEPARTMENT O,F

MINERALS AND ENERGYWESTERN AUSTRALIA

Policy and Plann!ng Division

Mineral House" i 00 Plain Street

East Perth WA 6004Telephone: (09) 222 3106

International: 61 9 222 3106

Facsimile: (09) 22’2 3410International: 61 9 222 3410

Email: [email protected]

November 1995

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