Sustainable mineral development - boosting NSW

Korean registered Hanjin Capetown loading export coal at dusk at the No.2 coal berth at Port Kembla

NSW produces a diverse range of minerals including coal, metals, industrial  and construction materials.

The minerals industry is the state’s largest export industry, accounting for around one third of total merchandise exports per year.

Coal, iron, steel and aluminium are the major mineral and processed metal exports, with coal accounting for over 72 per cent of the total value of production.

Presently there are more than 30 coal projects and 20 metallic and industrial mineral projects proposed for development over the next decade.

If all were to proceed they would involve a cumulative investment of more than $7 billion and generate over 5500 direct jobs.

Coal and Gas Projects

Recent sharp increases in coal and mineral prices has encouraged the development of a number of coal projects. Some of which are:

• Approval in June 2007 for the proposed Abel underground coal mine. The proposed mine could extract up to 4.5 Mtpa of run-of-mine coal and create up to 375 full time jobs.
• Centennial Coal’s proposed $240 million Anvil Hill open cut coal mine which includes mining of up to 10.5 Mtpa of thermal coal and may create up to 240 full time jobs.
• Since the start of 2006 mining leases have been granted to the Wilpinjong, Ravensworth West, Pine Dale and Tarrawonga coal mine projects.
• Kores Australia is proposing a new longwall mine development west of Wyong on the central coast. The project aims to develop the last remaining major coal resource deposit in the lower Hunter/Newcastle area, producing up to 5 Mt of run-of-mine coal for around 28 years and creating approximately 300 direct jobs.
• Narrabri Coal is proposing a new underground mine approximately 20 km southest of Narrabri. Stage 1 of the proposal involves mining of up to 2.5 Mtpa of run-of-mine coal by continuous miners.
• Namoi Mining is proposing a new
• open cut mine 15 km west of Gunnedah. The company aims to mine up to  1 Mtpa of run-of-mine Hoskisson seam coal using open cut and highwall  auger techniques.

As a result of NSW Government initiatives, there has also been an unprecedented level of petroleum exploration activity and investment which includes:

• Sydney Gas Company holds petroleum exploration licences over much of the Sydney Basin. To date it has concentrated efforts in the Camden area near Sydney. The company is also undertaking coal seam methane exploration near Bulga in the Hunter and Merriwa regions.
• Australian Coal Bed Methane Pty Ltd is active in evaluating coal seam methane resources in the Gunnedah basin and has had encouraging results from wells drilled to date near Caroona.
• Pangaea Oil and Gas holds a petroleum exploration licence in the northern Surat-Bowen Basin across the Moonie-Goondiwindi fault. They have recently acquired over 250 km of seismic data and are currently considering drilling and testing for an unconventional play.
• Molopo hold exploration licences in joint venture with Lucas Coal Seam Gas in the Gloucester Basin for coal seam methane. Results to date have been very encouraging. The company is also exploring in the Clarence-Morton Basin for both coal seam methane and conventional hydrocarbons.
• Harlow Australia is exploring for conventional petroleum northeast of Tibooburra. A completed magneto-telluric survey has identified anomalous areas having frequency signatures ‘similar to shallow oil field reservoirs’.

Metallic and Industrial Mineral Projects

The main focus for metallic mineral projects continues to be in the central west and far west regions of NSW.

• In late 2006, Newcrest lodged a major project application with the Department of Planning for its proposed $1500 million Cadia East open cut/underground gold and copper project. The Cadia East project has the potential to increase ore production at Cadia Valley Operations to around 32 Mtpa from the current 23 Mtpa and significantly extend the life of mining operations for up to a further 30 years.
• Barrick Gold’s $440 million Cowal gold mine, north of West Wyalong, commenced production in the first half of 2006 and was officially opened by the Premier, the Hon. Morris Iemma MP, in September 2006. The mine produced 121 930 ounces of gold in 2006.
• In March 2004 Straits Resources acquired the Hillgrove gold/antimony mine near Armidale in the state’s north. In mid 2006 the company made a decision to proceed with the project. The development of the underground operation is underway and first production is forecast by mid 2008.
• Tri Origin completed a pre-feasibility study for its Woodlawn underground gold and base metal project in April 2007 and has commenced work on a definitive feasibility study. Subject to necessary government approvals, development of the project may commence by early 2008.
• Through its exploration activities, Straits Resources is aiming to lift the current resource base at the Tritton copper mine from 353,000 T of copper metal, to the Company’s target of 1,000,000 Mt of copper in resource and 500,000 T in reserve.
• The Tritton expansion will focus on development of the Murrawombie open cut mine and the Larsen’s underground mine along with an expansion of the processing plant to 2 Mtpa. Development work on the Larsen’s underground mine was planned for late 2007 and initial ore production in the first half of 2008. Production from the Murrawombie open cut mine could commence in August 2008.
• In June 2006, Bemax Resources lodged a major project application with the Department of Planning for the Snapper project. The Snapper deposit lies only ten kilometres from the Company’s operating Ginkgo mine and will be developed as a production expansion within the Pooncarie project. The Snapper deposit reserve is 117 Mt @ 5.0% HM, with 5.9 Mt of contained heavy mineral.
• The NSW mining industry is based on favourable geology resulting in the discovery and development of many world class mineral deposits. The NSW Government provides exceptional incentives for explorers to invest in NSW through programes such as Exploration NSW and more recently, the New Frontiers initiative. The results should continue to provide significant stimulus to future exploration for mineral and petroleum resources.

Further information is avaiable by emailling minfo@dpi.nsw.gov.au