Resources Investment

Mining investment:
South Australia is being viewed by many companies both here and abroad as the centre of investment in new mines. It offers a stable regulatory regime and a government that "puts its money where its mouth is" not only in finding the pre-competitive data, but for standing side by side with mining companies in the high-risk taking exploration stages.

According to the State Government, there is likely to be significant growth in mining within the State from the current 9 mines to 23 by 2015 and 40 by 2020. Some potential mines in proximity to Whyalla include the following:

•    URANIUM SA - BLACKBUSH PROSPECT AT MULLAQUANA
Located 30 km south of Whyalla, a very large area north and south of this deposit has been identified as having high prospectively for Uranium. Potentially a viable mining operation, establishment and operation of a new mine close to Whyalla will have positive employment impacts and create work for local firms.

•    WESTERN PLAINS RESOURCES
Peculiar Knob is an iron ore deposit 90km south-west of Coober Pedy. The company plans to export 4.5mtpa over a 10 year period. They are looking to export from Port Bonython, where the establishment of a bulk export facility is already planned.

•    IRON CLAD MINING
This company owns the Wilcherry Hill deposits north of Kimba (comprising a 60 million tonne resource of high grade magnetite) and the Hercules deposit 15km from Wilcherry Hill. There is an inferred resource of 215 million tonnes at Hercules while their exploration target is 1 billion tonnes. To provide some perspective, the OneSteel iron ore deposits in Middleback Ranges have been mined for over 100 years and have produced 200 million tonnes of iron ore, so the Hercules project is potentially a very large development. There should be a range of spinoffs for Whyalla companies in respect to development of these mines.

•    IMX RESOURCES
Cairn Hill deposit which is located 55km south of Coober Pedy. This is a copper, iron and gold deposit. Phase one is currently under development.

•    IRON ROAD LIMITED
Warramboo deposit in the middle of Eyre Peninsula south of Wudinna. Estimated resource is 110 mtpa which is a very significant magnetite ore project. There is 5 mtpa export potential.
In respect to these various players in the iron ore mining activity, Jason Kuchel – Chief Executive of Chamber of Mines and Energy says:
"Collectively, the junior iron players will contribute billions to the SA economy in terms of infrastructure development, employment, taxes and royalties. Collectively we have the equivalent of another Olympic Dam on our doorstep"

•    OLYMPIC DAM
The proposed expansion of the Olympic Dam mine at Roxby Downs represents an unprecedented opportunity for Whyalla.  If the expansion goes ahead, it will create the world's largest Uranium Mine and the world's 4th largest Copper Mine and will become the largest mining project ever undertaken in the world. Mining methodology will be transformed from an underground operation to open cut. To develop the open cut, BHP will have to remove 410 million tonnes of overburden material a year for five years to get to the top of the Ore body.

The project is expected to inject billions of dollars into the South Australian economy and generate thousands of jobs. A final decision will be made early in 2012 but BHP Billiton's record half-year profit is a good sign that the project may well go ahead. Some 6,000 jobs would be created in the construction phase with a further 4,000 positions at the expanded open pit mine.

Large scale resource processing investment:
Whyalla has all the credentials for major resource processing activities. It was the site chosen as a result of exhaustive examination of 70 potential sites throughout Australia for a proposed Titanium Dioxide processing plant in the early 90s. It was a preferred site for an integrated petrochemical plant. Extensive areas of land exist to the north of the city for plants which might have a large footprint. Water, energy and extensive transport infrastructure exists to support such activities.

ARAFURA RESOURCES
This company has chosen Whyalla as a location for a $1bn rare earth processing plant on an 800 hectare site adjacent to the Industrial Estate in 2012. This proposal has been granted major project status by the SA Government and approvals are currently being sought.

BEACH ENERGY
Beach Energy recently announced that it planned to construct a Liquid Natural Gas plant in Whyalla. This is also a $1bn project involving a large construction workforce and many hundreds of permanent employees.

SOLAR THERMAL TECHNOLOGY
The Whyalla Industrial Estate will be the home of innovative solar thermal technology.  A demonstration plant is currently under construction. Two companies are looking to construct a commercial scale Solar Thermal Power Station which will be able to produce base load power from a renewable source. The new power station will be a $350 million investment in the city. Other solar power projects are also under consideration for Whyalla.

These multi-million dollar projects will have high employment outcomes and create many servicing, maintenance, construction and supply chain opportunities for Whyalla firms.