australia's identified mineral resources 2004 - Geoscience Australia

AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2004
Exploration
There was no exploration for vanadium during the year.
Production
In 2003, Australia produced 694 t V 2 O 5 flake (389 t V) valued at $4.665 million, all of this being from
Windimurra mine in its final months of operation prior to suspension of production.
Most of the world’s mine production of vanadium for 2003 was from China (58%), South Africa (25%)
and Russia (15%).
Industry Developments
Production at Windimurra mine was suspended in February 2003, and the mine was permanently
closed in May 2004. Xstrata AG declared that operations at the mine and processing plant were not
profitable in 2002 (Xstrata Annual report 2002). The profitability of Windimurra was strongly affected
by two factors: low prices for V 2 O 5 , and the US dollar/Australian dollar exchange rate. Despite
increasing demand in recent years, the vanadium market remained in oversupply, which kept market
prices for both V 2 O 5 and ferrovanadium (FeV), at low levels. Prices for V 2 O 5 were less than US$1.50
per pound throughout the period 2000 to 2002, and US$1.70–$1.80 for 2003. During the period in
which the Windimurra feasibility study was being investigated (1998 and 1999) prices ranged from
US$4 to more than US$6 per pound.
Xstrata also operates large vanadium mining/metallurgical operations at Rhovan and Vantech in
South Africa.
During 2004, the WA State Government initiated an inquiry into the closure of the Windimurra
operations. The inquiry will also investigate the management of vanadium resources at Windimurra,
and the impact of management on market price of vanadium and State resources. A report on the
inquiry is due to be released by the end of 2004.
During the year, Greater Pacific Gold NL carried out metallurgical test work to determine the
commercial feasibility of the process technology for extraction of V2O5 and titanium from the
Gabanintha project (40 km SE of Meekatharra). Test work was carried out on drill core samples
recovered from large diameter holes which were drilled during the year. The holes were all drilled
to a depth of 50 m. Results to date show that the degree of upgrading of the titaniferous minerals
was limited by the fine-grain size and intergrowth with iron oxides.
Zinc, Lead, Silver
The construction and appliance manufacturing industries use large amounts of zinc, mainly as
coatings on steel beams, sheet steel and vehicle panels in the automotive industry. It is also used
in alloy die cast products, zinc pigments, zinc salts, zinc oxide as additives to rubber and for zinc
chemicals in agriculture, and for wrought or rolled zinc products.
The widespread occurrence of lead, coupled with its relatively simple extraction, malleability and
resistance to corrosion, have made it useful to humans since at least 5000 BC. In deposits mined
today, lead (in the form of galena, PbS) is usually associated with zinc, silver, and is extracted as a
co-product of these metals. More than half of the lead used today comes from recycling, rather than
mining. The largest use is in batteries for vehicles and communications. Less important uses include
cable sheathing, solder, casting alloys, chemical compounds, ammunition, glass in TV and computer
screens for radiation protection, and ceramics. Its use as a petrol additive has declined significantly
with the gradual introduction of lead-free petrol worldwide. New uses for lead could be in large
storage batteries used for load-levelling of electrical power and in electric vehicles.
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The relative scarcity, attractive appearance and malleability of silver has made it suitable for use in
jewellery, ornaments and silverware since before ancient Roman times. Its extensive use in coins
throughout history has declined over the last forty years. In Australia, the 1966 fifty-cent piece was