australia's identified mineral resources 2004 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2004
World Ranking
Australia has some 9% of world EDR of iron ore and is ranked fourth after Ukraine (21%), Russia
(17%) and China (15%). In terms of contained iron, Australia has about 11% of the world’s EDR and
is ranked third behind Russia (21%) and Ukraine (14%).
Australia produces around 18% of the world’s iron ore production and is ranked third behind China
(21%) and Brazil (19%).
Industry Developments
Hamersley Iron (100% Rio Tinto): In December 2003 Hamersley Iron announced plans to spend
$1.25 billion expanding the Port of Dampier ($945 million) and the Yandicoogina mine ($270
million) in the Pilbara region and rail upgrading ($35 million). The port expansion will boost iron
ore capacity from 74 to 116 Mtpa and output at Yandicoogina will rise from 24 to 36 Mtpa. The
Yandicoogina expansion is due for completion in early 2005 and the port expansion is scheduled to
be commissioned in late 2005. During 2003, the Yandicoogina mine was expanded from 20 to 24 Mtpa.
Brockman No. 2, 60 km NW of Mount Tom Price, was placed under care-and-maintenance in 2002
while a major upgrade of the operation was undertaken. The mine reopened in 2003 with a capacity
of 8 Mtpa. The Eastern Range mine, 10 km east of the Paraburdoo mine, is scheduled to commence
in 2004 as a replacement for the depleted Paraburdoo orebodies. At Marandoo, 40 km NE of Mount
Tom Price, investigations are being undertaken into future mining areas to the north and east of the
current mining operation.
Robe River Associates (53% Rio Tinto): During 2003 Rio Tinto and Robe River Associates agreed
to ship ore from Rio’s wholly owned Yandicoogina mine through Robe’s Cape Lambert port
facilities. The first iron ore from the Yandicoogina mine was shipped from Cape Lambert in October
2003. In January 2004, Rio Tinto and Robe River Associates agreed to form a new entity referred to
as Pilbara Iron which will be responsible for operating and maintaining all of Hamersley Iron’s and
Robe’s rail, port, power and non-infrastructure assets as well as providing corporate and site services.
In December 2003, Robe River Associates announced a US$105 million expansion of the West
Angelas mine to a nominal capacity of 25 Mtpa. Work on the expansion is expected to commence
in early 2004 and commissioning is due by mid-2005. The mine was commissioned in 2002 and is
scheduled to be producing 20 Mtpa during the first half of 2004.
BHP Billiton: The Mining Area C (MAC) project located 120 km NW of Newman in the Pilbara
region of Western Australia was officially opened on 30 October 2003. The US$213 million project
was commissioned ahead of schedule and consists of a mine, processing plant, 38 km rail spur and
associated infrastructure with a capacity of 15 Mtpa. The first Marra Mamba ore was railed to Nelson
Point on 16 August and the first shipment departed on 24 September 2003. MAC production is
scheduled to ramp-up to 15 Mtpa by 2005.
The Products and Capacity Expansion (PACE) project continued during 2003 and is scheduled for
commissioning in the first half of 2004. The US$351 million project will expand BHP Billiton’s rail
and port facilities in the Pilbara from 85 to 100 Mtpa. Feasibility studies are being undertaken for a
further expansion to 120 Mtpa should the market warrant additional capacity.
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The US$27 million Iowa project at the Yandi mine is scheduled to be completed in early 2004.
Work includes upgrading ore handling facilities and installing a 5.3 km long overland conveyor.
The conveyor is designed to reduce ore haulage costs as trucking distances lengthen for some of
the Yandi pits. The upgrade will raise the operations capacity 3 Mtpa to 42 Mtpa.
Portman Ltd: The Koolyanobbing expansion project received State and Federal Government
approvals during 2003. Environmental approvals included a condition that no more than 30% of
the native plant Tetratheca Paynterae was directly impacted by mining at Windarling.