australia's identified mineral resources 2005 - Geoscience Australia
australia's identified mineral resources 2005 - Geoscience Australia
australia's identified mineral resources 2005 - Geoscience Australia
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
AUSTRALIA’S IDENTIFIED MINERAL RESOURCES <strong>2005</strong><br />
Production<br />
Globally in 2004, <strong>Australia</strong> was the leading producer of bauxite and alumina, and aluminium metal<br />
production was the highest recorded level. In 2004, production totalled 56.6 Mt of bauxite, 16.5 Mt<br />
of alumina and 1.9 Mt of aluminium (ingot metal). In comparison to 2003 this represents an increase<br />
of 1.8% for bauxite with no change for alumina and aluminium.<br />
World Resources<br />
Based on USGS data for other countries, <strong>Australia</strong>’s demonstrated bauxite <strong>resources</strong> of 7.7 Gt rank<br />
second in the world after of Guinea and ahead of Brazil, Jamaica and China.<br />
Industry Developments<br />
Strong markets for aluminium in North America, with growth in demand of around 10% together with<br />
increased demand from China, resulted in the primary aluminium market moving into deficit for the<br />
first time since 2000. In 2004, the annual average price of aluminium increased to 78 US cents per<br />
pound, an increase of 20% against the average in 2003.<br />
Expansion of the Weipa bauxite mining operation in Queensland was completed, resulting in an<br />
increase in production capacity to 16.5 Mtpa. This supports the new Comalco Alumina Refinery at<br />
Gladstone, the first stage of which was completed in late 2004. The mining upgrade relates to a<br />
move to simultaneous mining at Weipa’s Andoom and East Weipa mines and involves a change in<br />
ore characteristics (fine ore) to that previously being mined. Integral to this expansion is a 9.5 Mtpa<br />
beneficiation plant to allow the mining of lower grade fine ores. The next infrastructure activity will<br />
be construction of a new US$42 million power station to service the Weipa mining operations and<br />
surrounding communities.<br />
Alcan has significant reserves of bauxite within its Ely/Ducie-Wenlock lease located approximately<br />
25 km north of Weipa. Under an agreement with Comalco, the Ely deposit will be integrated into<br />
Comalco’s overall mining plans, with mining forecast to start about 2010. A drilling program to<br />
further evaluate the Ducie-Wenlock deposit, which is contained within the same mining lease as Ely,<br />
commenced in 2004.<br />
The Queensland Government’s Aurukun bauxite project moved ahead during 2004 following<br />
investigations by Brisbane-based IMC Consultants, who found there were sufficient <strong>resources</strong> of<br />
bauxite at the Aurukun site (some 90 km south of Weipa) to warrant further exploration to fully<br />
delineate the deposit and investigate establishment of a mine and alumina refinery. The Government<br />
committed to a three-stage competitive bid process comprising Registration of Interest, Expression of<br />
Interest, and Binding Bids. The objectives for development of the Aurukun resource include its<br />
development as a source of bauxite for a new alumina refinery in Queensland.<br />
In late 2004, Alcan announced it would proceed with a US$1.3 billion expansion of its Gove alumina<br />
refinery in the Northern Territory. Lifting the refinery’s capacity from 2.1 to around 3.8 Mtpa, the<br />
project will significantly improve operating efficiency and enhance environmental performance.<br />
18<br />
The strong international demand for <strong>mineral</strong> <strong>resources</strong> has resulted in renewed interest in bauxite<br />
deposits in northern Western <strong>Australia</strong>. The Minister for State Development granted the Mitchell<br />
Plateau Joint Venture a seven month extension to the end of April <strong>2005</strong> to submit detailed proposals<br />
to develop the Mitchell Plateau bauxite resource in the Kimberley region. The extension also<br />
provides further time for the Government to test third-party interest in developing a mining and<br />
refining project in the region based on the resource.<br />
In Western <strong>Australia</strong>, Alcoa’s Pinjarra refinery is aiming to improve its greenhouse intensity by around<br />
12% through a $440 million refinery upgrade and the construction of two cogeneration power units,<br />
which will produce power for the State’s electricity market and provide waste heat for the Pinjarra<br />
refinery. The units will be owned by Alinta Limited and operated by Alcoa, who will take all steam<br />
produced by the facility for use in its refinery. Cogeneration is more than 80% energy efficient,<br />
compared with 25–50% for other power plants operating in Western <strong>Australia</strong>.