australia's identified mineral resources 2004 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2004
Olympic Dam: During 2003, a total of 9.0 Mt ore was mined at Olympic Dam. The processing plant
treated 8.4 Mt ore with an average grade of 2.4% Cu and 0.63 kg/t U 3 O 8 to produce 160 080 t
copper and 3176 t U 3 O 8 . Reconstruction of both the copper and uranium solvent extraction plants
(previously destroyed by a fire in late 2001) was completed in 2003. The new uranium solvent
extraction plant was operating at planned production rates by June. As a result, production rates
increased during the year and it is anticipated that the plant will operate at full capacity of 235 000 t
copper and 4500 t U 3 O 8 during 2004.
WMC Resources commenced a study to determine whether there should be a major expansion
of the Olympic Dam mine. The main investigations and work programs for this study include:
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an additional 72 km of drilling to evaluate the undeveloped southern deposit,
assessment of mining and processing methods for the southern deposit,
environmental studies, including the scoping of a new Environmental Impact Statement,
a detailed investigation of options for future water and energy supplies to the operation.
Studies to date have indicated that by extending underground mining, Olympic Dam could increase
capacity from the current level of 235 000 t copper to 350 000 t copper per year. The company
considers that open pit mining, when added to continuing underground operations, could increase
copper production to more than 500 000 t per year, with associated increases in uranium production.
The development study is scheduled to be completed in 2006.
A major drilling campaign continued during 2003 to explore and delineate the southern orebody,
the results of which will be used to evaluate the various mining options as part of the study.
Beverley: In situ leach (ISL) mining was extended from the North Orebody into the much larger
Central Orebody during 2003. Plant capacity was expanded to include a third train of ion exchange
columns. Installation of the main pipelines (trunklines) connecting the plant to the Central Orebody
was completed, and lateral pipelines and wellhouse connections were installed. Production rate
increased steadily during the year and by early 2004, production reached an annualised rate of 1000 t
U 3 O 8 , the licensed capacity of the plant.
During 2003, Commonwealth and South Australian Government agencies considered a proposal from
the company to expand the Beverley operations to produce up to 1500 t U 3 O 8 per year. The
company was required to undertake groundwater modelling studies to determine the hydrological
impacts on the Beverley aquifer which may result from increased rates of disposal of liquid wastes
from the ISL operations. Reports were submitted to Government agencies for assessment and a final
decision is expected in early 2004.
Jabiluka: During 2003, the mineralised stockpile was placed in the underground mine openings
and the 1.2 km decline was backfilled with waste rock. The project site remains on long-term careand-maintenance.
Honeymoon: In late 2001, Southern Cross Resources received Commonwealth and State environmental
clearances to develop the Honeymoon ISL uranium project (SA). However, development is currently on
hold pending an improvement in market conditions.
Western Australia: The Western Australian State Government has recently introduced new legislation
to prohibit the mining of uranium for nuclear purposes from any mining lease granted after June
2002. The policy is now a draft Bill called the Uranium Mining Prohibition Bill 2004. There are no
uranium mines in Western Australia, but there are large deposits at Kintyre and Yeelirrie.
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In March 2004, the Western Australian Government and WMC Resources reached agreement to
terminate the Uranium (Yeelirrie) Agreement Act 1978. This Act was legislated in 1978 to facilitate
the possible construction of a uranium and vanadium treatment plant at Yeelirrie.