QLD Mining and Energy Bulletin
Issue link: http://ebook.aprs.com.au/i/31843
Phosphate mine approved in outback Queensland The Queensland Government has approved an $800 million phosphate mining lease in the state’s north-west. The lease will allow Legend International Holdings to mine two of its mineral reserves north of Mount Isa. Project manager Ed Walker says it will have an operational life of 60 years and create about 1,300 jobs. He says some of the phosphate will be sold domestically as fertiliser. “The major markets are both here in Australia - currently Australia imports about 700,000 tonnes of compound fertiliser - and also India is the biggest market in the world for phosphate exports.” Source: ABC News Rio Tinto production hurt by Queensland’s wild weather Rio Tinto chief executive, Tom Albanese, said “Our Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter, but most are recovering and are benefiting from continued strong prices. We have successfully gained control of Riversdale Mining Limited and plan to accelerate the development of these significant tier one coking coal assets.” • Global iron ore production of 42 million tonnes attributable (53 million tonnes on a 100 per cent basis) was down three per cent on the first quarter of 2010 and down 16 per cent on the fourth quarter of 2010. Operations in the Pilbara were disrupted by three tropical cyclones and widespread flooding. • Capacity of Pilbara iron ore operations increased to 225 million tonnes per annum (Mt/a) at the end of the fi rst quarter, following completion of the fi rst debottlenecking project at the Dampier port. • Mined copper was down 14 per cent on the fi rst quarter of 2010, refl ecting lower grades at Escondida and Grasberg. 14 14 QLD Mining and Energy Bulletin Winter 2011 • Alumina production was down four per cent on the fi rst quarter of 2010, primarily due to heavy rains in Queensland. Bauxite and aluminium production were broadly fl at. • Severe monsoonal rains led to the declaration of force majeure at the four Queensland mines at the end of 2010 and remains in place at Hail Creek. - Australian hard coking coal production was down 12 per cent on the fi rst quarter of 2010 and down 29 per cent on the fourth quarter of 2010. - Australian thermal coal production was consistent with the fi rst quarter of 2010. Higher New South Wales production mitigated the Queensland interruptions. • On 8 February, Rio Tinto approved a $933 million investment to extend the life of the Marandoo iron ore mine by 16 years to 2030. • On 10 February, Rio Tinto announced a $5 billion capital management programme. By 12 April, 15.6 million Rio Tinto plc shares had been bought back at a total cost of $1.1 billion. • On 7 April, Rio Tinto approved $238 million to advance a feasibility study for extending the life of Kennecott Utah Copper’s Bingham Canyon Mine in Salt Lake City, and for the purchase of related long-lead time equipment. • By 12 April, Rio Tinto had assumed control of Riversdale Mining Limited, following the acquisition of a 52.6 per cent interest in the company, delivering control of signifi cant tier one coking coal projects. All currency fi gures in this report are US dollars, and comments refer to Rio Tinto’s share of production, unless otherwise stated. Source: Rio Tinto Australia Industry welcomes new mines minister Queensland’s peak resources sector body has welcomed Stirling Hinchliffe’s appointment as the state’s Minister for Employment, Skills and Mines. Chief Executive of the Queensland Resources Council, Michael Roche, said Hinchliffe has had extensive exposure to the mining and gas sectors and its issues through his former Infrastructure and Planning portfolio. The new mines minister will be responsible for the key pieces of regulation governing the mining and gas sectors, the Mineral Resources Act and the Petroleum and Gas Act. “We also see valuable synergies between his new skills and mining industry responsibilities given the worrying skills shortages confronting the resources sector, both in mining and gas,” Roche said. “Looking to the medium term, given that the state’s mining and energy sectors directly and indirectly contribute more than 20 per cent of the state’s output, and the synergies between the two sectors, we still believe that there is a strong case for a standalone mines and energy minister. “QRC will be making that case in the lead-up to the next election.” Source: QRC Gas companies accept new CSG laws Compulsory new reporting requirements for petroleum and gas companies planning exploration and production activities are now in force, according to Queensland’s Employment, Skills and Mining Minister Stirling Hinchliffe. Under the new requirements, companies must now give affected landholders at least 10 business days written notice of any drilling, fraccing or certain exploration techniques. Companies must also submit detailed reports to government about hydraulic fracturing activities – including the composition of all fl uids used in each well and potential impacts on water aquifers. Hinchliffe said the Bligh Government supported the development of the Queensland mining and resources industries but it was important this was balanced with agriculture, environmental considerations and social impacts. “These new laws are designed to make sure landholders know exactly what is happening STATE NEWS