Mining in Western Australia
From Wikipedia, the free encyclopedia
The Western Australian mining industry is the largest and most diversified resource industry in Australia[1]. The state encompasses about one-third of the Australian continent and includes rich mineral resources including iron ore, nickel, diamonds, bauxite, uranium, gold, coal and mineral sands
As of May 2007, there were 560 commercial mineral projects underway, including 1,222 operating mine sites and 171 operational processing plants.[1]
In 2002-03, Western Australia accounted for 43% of sales and service income for the total Australian mining sector (all minerals, including oil and gas), followed by Queensland at 24%; New South Wales and the Australian Capital Territory contributed 16% of the total[2]. Total revenues were A$23.9 billion in the same period.
In 2005-06 the Western Australian resources sector accounted for 50% of Australia's total value of mineral and petroleum sales, 67% of Australia's oil and condensate production production, 50% of Australia's mineral production and 31% of Australia's total merchandise exports.
The resources industry is the economic backbone of Western Australia, accounting for around 30% of Western Australia's Gross State Product (GSP). During 2006 the industry paid some $1.914 million in mining royalties to the State Government, up from $1.513 million in 2005.
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[edit] Lead
Possibly the earliest mining operations in the state after European settlement came about shortly after Augustus Gregory discovered lead on the Murchison River in 1839. A mine was subsequently established and named Geraldine after Governor Charles Fitzgerald. The town of Geraldton was named after the mine.
[edit] Gold
In 1869, John Forrest led a party into the Leonora area searching for a lost expedition led by Ludwig Leichhardt. Subsequently, the first gold claims were pegged at Leonora and nearby Gwalia. Discovery of gold in Coolgardie in 1892 by William Ford and Arthur Bayley set off a gold rush which would shortly expand to Kalgoorlie in 1893 and bring the state out of many years of economic doldrums.
Western Australia extracts up to 75% of Australia's 240 tonnes of gold per annum.
[edit] Coal
Coal was known to be in the Collie district for many years, but wasn't fully developed as a viable industry until the establishment of the Goldfields Water Supply Scheme in the early 1900s when the State government pushed for its development to provide a source of energy to power the pumps which moved water from Mundaring Weir to Coolgardie. Cut timber had been used in the first few years of the scheme's operations.
[edit] Asbestos
Blue asbestos was discovered at Wittenoom Gorge in the 1930s by Lang Hancock and claimed as a mining tenement in 1934. The mine supplied much of the world's demand for asbestos until it closed in 1966 due to health concerns for its workers.
[edit] Iron Ore
95% of Australia's iron ore occurs in Western Australia, and Australia is the world's largest exporter of the mineral. Brazil and Australia supply about 60% of the world's production.
Iron ore was first discovered in Western Australia in 1952 by Lang Hancock in the Hamersley Range near Newman. The mine is world's largest open cut iron ore mine.
Iron ore is now the largest individual mineral sector by value, accounting for 30% of the value of the State's resources output in 2006. Some 250 million tonnes of iron ore with a value of some $14.6 billion was exported from the State in 2006.[3]
Iron ore mining contributed some $774 million in royalty payments to the State Government in 2006.
The State's Mid West region, inland from the coastal city of Geraldton, has the potential to become Australia's second iron ore province.[4] The Geraldton Iron Ore Alliance was formed in 2005 to represent the interests of Mid West iron ore companies.
[edit] Nickel
About 99% of Australia's nickel is produced in Western Australia which supplies about 13% of the world's nickel production. The state produces 140,000 tonnes per annum which is valued at A$1.0 billion.
The discovery in Kambalda, Western Australia in 1966, Mt. Windarra in 1969 and Agnew in 1971 coinciding with rising world nickel prices and a prolonged strike at a major nickel in Canada, meant that the discoveries were rapidly developed, bringing about a "nickel boom" between 1967 and 1971.[5]
[edit] Diamonds
Alluvial diamonds had been found occasionally for many years by prospectors searching for gold. A systematic search for the source began in 1969, and on October 2, 1979, the Argyle pipe was discovered. Over the following three years, the deposit was assessed for economic viability, and in 1983 the decision was made to commence mining operations. Alluvial mining operations commenced immediately, while the open pit mine was constructed over a period of 18 months at a cost of A$450 million. The mine was commissioned in December 2007 and is currently the largest diamond producer in the world by volume, although due to the low proportion of gem-quality diamonds, is not the leader by value. It is the only known significant source of pink diamonds, producing 90 to 95% of the world's supply.
[edit] Bauxite
The Darling ranges contain considerable deposits of bauxite, and these have been mined by Alcoa and Worsley Alumina for the production of alumina.
Alcoa's first bauxite mine at Jarrahdale was opened in 1963 to service the Kwinana alumina refinery. 168 million tonnes of bauxite was mined from Jarrahdale until its closure in 1998. The Huntly mine was established in the early 1970's to supply bauxite for both the Kwinana and Pinjarra refineries. It is currently the biggest bauxite mine in the world. The Wagerup refinery is serviced by the Willowdale bauxite mine, established in 1984.[6]
Worsley Alumina constructed a mine site and refinery in the early 1980's. The mine site is located near Boddington and the bauxite is transported by a 51km conveyor belt to the refinery at Worsley. Following a $1 billion AUD expansion in 2000, Worsley now export 3.1 million tonnes of alumina.[7]
[edit] Salt
Western Australia accounts for 93% of the nation's salt production. 2005-06 saw sales of 10.8 million tonnes of salt to the value of $280 million AUD.
The major miner of salt is Dampier Salt Limited with their operations in Dampier, Port Hedland and Lake Macleod. Other smaller operations include Onslow Salt Pty Ltd at Onslow, the Shark Bay Joint Venture at Useless Loop, and the WA Salt Supply at Lake Deborah (near Koolyanobbing) and Pink Lake (Esperance).[8]
[edit] Uranium
- See also: List of uranium mines
Although the State has significant uranium resources, State Australian Labor Party (ALP) policy currently prohibits uranium mining.
A consultancy report undertaken for the Federal Government's Uranium Mining, Nuclear Power and Energy Review (UMNPER) identified a number of possible projects in Western Australia.[9]:
Lake Way and Centipede - Nova Energy’s Lake Way and Centipede deposits are located 17km and 30km south east, respectively, from Wiluna in Western Australia. The deposits are located near significant regional infrastructure, including the Goldfields gas pipeline and the Wiluna airstrip. Nova Energy has recently completed a scoping study. The study found that these two deposits have a combined JORC compliant inferred mineral resource of 8400 tonnes of U3O8. The scoping study indicated that the project could produce between 510 and 800 tonnes of U3O8 a year.
Lake Maitland - Redport Limited’s Lake Maitland deposit is located 130km south east of Wiluna in the eastern Goldfields. The deposit is in close proximity to a number of existing operations and is thus in an area with significant developed infrastructure. Lake Maitland has an inferred resource of around 7900 tonnes U3O8, and Redport Limited is targeting the commencement of a scoping study in 2006 followed by a feasibility study in early 2007. It is expected that the mining costs of the operation will be small as the mineralisation is generally within 2–3 metres of the.
Kintyre - Rio Tinto’s Kintyre deposit is 423km south east of Port Hedland. Canning Resources Pty Ltd and Rio Tinto Exploration Pty Ltd, both wholly owned subsidiaries of Rio Tinto, together conducted a feasibility study in the late 1980s. Kintyre has resources of 36 000 tonnes at an average grade of around 0.25 per cent of U3O8. Rio Tinto has recently been involved in discussions with traditional land owners in relation to the potential for development of Kintyre. It is expected that if approved by both the government and the traditional owners, the mine will be open-cut and potentially produce around 1800 to 2000 tonnes of U3O8 a year.
Yeelirie - BHP Billiton's Yeelirrie deposit is 70km south west of Wiluna in the eastern Goldfields and is located near the Goldfields gas pipeline. The deposit contains a mineral resource of 52 500 tonnes U3O8. The operation could potentially produce 2500 tonnes of U3O8 a year.
Manyingee - Paladin Resources’ Manyingee deposit is located 85km south of Onslow. The Tubridgi natural gas pipeline is 500 metres east of the deposit. A pre-feasibility study was conducted at Manyingee in 1985 and a resource of 7860 tonnes U3O8 was defined. Paladin has since revised the resource model to define a resource of 12 078 tonnes U3O8. Paladin has appointed a project team to establish a program and schedule for a bankable feasibility study for Manyingee.
Oobagooma - Paladin Resources’ Oobagooma project is located 75km north east of Derby in the Kimberley region. Previous owners, Acclaim Uranium, defined a total geological resource of 5000 tonnes U3O8. This project requires further reserve/resource drilling to establish a JORC compliant resource.
Thatchers Soak - Uranex’s Thatchers Soak project is located 134km north east of Laverton. The company plans to have a JORC compliant resource by the end of 2006 and will commence a scoping study in early 2007.
[edit] See also
[edit] References
- ^ a b Minerals and Petroleum. Department of Industry and Resources. Retrieved on 2006-09-30.
- ^ 8415.0 - Mining Operations, Australia, 2001-02 and 2002-03. Australian Bureau of Statistics. Retrieved on 2006-09-30.
- ^ 2006 Statistics Digest. Department of Industry and Resources. Retrieved on 2007-08-02.
- ^ Economic expansion in the Mid West: Social and Economic Benefits. Geraldton Iron Ore Alliance. Retrieved on 2007-08-02.
- ^ Nickel Indistry ready for the next step. Minister for State Development. Retrieved on 2006-10-02.
- ^ Alcoa in Australia: Mining. Retrieved on 2006-12-27.
- ^ Worsley Alumina: About Us. Retrieved on 2006-12-27.
- ^ Western Australian Mineral and Petroleum Statistics Digest 2005-06. Retrieved on 2006-12-27.
- ^ ABARE. Retrieved on 2007-08-01.
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