australia's identified mineral resources 2005 - Geoscience Australia

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AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005 22% of world uranium production in 2004, is the world’s second largest producer after Canada (29%). While there are a number of undeveloped deposits in Western Australia, Northern Territory, South Australia and Queensland, only the Northern Territory and South Australia permit uranium mining. Exports Exports in 2004 reached a record 9 648 t U 3 O 8 (8182 t U) valued at A$411 million. Exports of Australian uranium are controlled by Australian Government bilateral safeguards agreements, which are designed to ensure that Australia’s uranium is used only for electricity generation and is not diverted to any military purposes. Importing countries must be signatories to the International Atomic Energy Agency’s safeguards arrangements and have entered into an agreement with the Australian Government to adhere to safeguard obligations for exporting uranium. In addition, the Government recently announced the requirement for countries purchasing Australian uranium to have ratified the Additional Protocol under the Nuclear Non-Proliferation Treaty. This is to strengthen current safeguards arrangements covering exports of uranium. Australian mining companies supply uranium under long-term contracts to electricity utilities in United States, Japan, European Union (United Kingdom, France, Germany, Spain, Sweden, Belgium, Finland), South Korea and Canada. Industry Developments Uranium market developments: Resurgence in spot market prices for uranium continued in 2004. This stemmed from reductions in secondary supplies of uranium available to world markets together with draw-down of stockpiles. Since 1990, world uranium requirements for electricity generation have exceeded mine production, and in recent years mine production accounted for less than 60% of world requirements. The balance has been met from secondary sources including: stockpiles of natural and low-enriched uranium held by electricity utilities and conversion plants; and downblending of highly enriched uranium (HEU) from ex-military stockpiles in both the Russian Federation and the USA. Over the last few years, the Russian Federation has retained this material to meet the growing demand for uranium for increasing domestic electricity generation. This has decreased the availability of secondary supplies to world markets Ranger: Operated by Energy Resources of Australia Ltd (ERA), the mine achieved record production for 2004. Mining of the No. 3 Orebody is expected to continue until at least 2008, after which the pit will be used for the storage of tailings. Production from stockpiled ore will continue until 2012. Metallurgical test work was undertaken to investigate the feasibility of processing lateritic ore, which has been stockpiled from earlier mining operations. Olympic Dam: Production at Olympic Dam for 2004 was 38% higher than for the previous year. Reconstruction of both the copper and uranium solvent extraction plants (destroyed by a fire in late 2001) was completed and the new uranium solvent extraction plant operated at planned production rates during the year. 68 WMC Resources has been investigating the feasibility of a major expansion of operations, which would increase annual production to 500 000 t copper, 15 000 t U 3 O 8 and 500 000 ounces gold. The study includes: ■ ■ ■ ■ A major drilling program (90 drill holes) to better define the resources in the southern part of the deposit; Assessing alternative mining, treatment and recovery methods for the southern part of the deposit; Identifying and evaluating water and energy supply options; and Logistics planning that may include linking Olympic Dam to the national rail network. Evaluation of mining methods and scale of operations was finalised in March 2005. Open cut mining is the preferred method, where it is proposed to mine 35 Mt/year from the open pit and 5 Mt/year from the existing underground operations. During the period, WMC Resources was the target of takeover bids, firstly by Xstrata and then by BHP Billiton. BHP Billiton, with a bid of $9.2 billion (US$6.9 billion), secured control in June 2005 and will continue evaluation of the major expansion at Olympic Dam.
AUSTRALIA’S IDENTIFIED MINERAL RESOURCES 2005 Beverley: In 2004, the Beverley mine produced 920 t U, making it the world’s largest single in situ leach uranium mine. Mining progressed from the North orebody to the much larger Central orebody. Installation of the main trunk lines connecting the plant to the Central orebody was completed. Honeymoon: Southern Cross Resources commissioned an engineering study to determine the cost of a plant at Honeymoon with production capacity of 400 t U 3 O 8 /year. Based on results, a decision was made to keep the project on hold. A program of drilling was completed to better define the resources at Honeymoon and East Kalkaroo deposits. Jabiluka: In February 2005, the Mirarr Gundjeihmi Aboriginal people, ERA Ltd and the Northern Land Council signed an agreement for the long-term management of the Jabiluka lease. The agreement obliges ERA Ltd (and its successors) to secure Mirrar consent prior to any future mining development of uranium deposits at Jabiluka. The project site remains on long-term environmental care. The traditional Aboriginal land-owners have refused to grant approval for development of the Jabiluka mine. ERA Ltd has announced that there will be no further development at Jabiluka without the formal support of Aboriginal people, and subject to feasibility studies and market conditions. Western Australia: In March 2004, the Western Australian Government and WMC Resources reached agreement to terminate the Uranium (Yeelirrie) Agreement Act 1978. The Act was legislated in 1978 to facilitate the possible construction of a uranium and vanadium treatment plant at Yeelirrie. The Western Australian Government has prohibited the mining of uranium for nuclear purposes from any mining lease granted after June 2002. ABOVE: Drums of Beverley’s uranium oxide concentrates being loaded into shipping containers ready for export (Heathgate Resources Pty Ltd). LEFT: Beverley’s uranium extraction plant and main trunklines (pipelines), which carry solutions from the wellfield to the plant (Heathgate Resources Pty Ltd). BELOW: Wellfield at Beverley in situ leach uranium mine, South Australia (Heathgate Resources Pty Ltd). 69
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