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MOST INFLUENTIALFEATURE
MINING PROJECTS
Special Report
MINING PROJECTS
F E AT U R E
Key takeaways
• Lithium projects
increasingly
among state’s
biggest
• Rebound in iron
ore price opens
market to smaller
players
• WA at centre
of another
commodities
boom, as
agricultural
sector’s demand
for potash set to
BUSY: David Klanecky (left), Simon Birmingham, Arthur Culvahouse and Mark McGowan at the sod-turning ceremony
soar for Albemarle’s Kemerton plant.
Billions pour into WA’s top 10
High-level iron ore, lithium and gold projects set pace for more than
50 developments in fresh commodities boom.
Iron ore, including magnetite,
continues to dominate the list of SEARCHENGINE
WA’s Top 10 Mining Projects
...your key to WA business (Included if project is classified as ‘likely’ or ‘ongoing’)
the state’s largest projects, with
seven that are either likely or
Rank Project Name Owner/Developer Category Cost
ongoing, worth a combined
$12.34 billion. 1 South Flank BHP Group Iron ore $4.6bn
However, lithium is becoming
entrenched at the top end of the 2 Iron Bridge Fortescue Metals Group, Formosa Plastics Group, Baosteel Magnetite $4.4bn
list, as miners in WA gradually
3 Koodaideri Rio Tinto Iron ore $3.5bn
seek to expand their involve-
Adrian Rauso
adrian.rauso@businessnews.com.au
ment further up the processing 4 Wodgina Refinery Mineral Resources, Albermarle Corporation Lithium $2.2bn
chain.
The lithium industry in WA 5 Eliwana Fortescue Metals Group Iron ore $1.7bn
T
OTAL investment in has continued its rapid growth,
6 Robe River sustaining Rio Tinto Iron ore $1.3bn
Western Australia’s 10 and there are now 13 projects in
biggest mining projects the pipeline, with a total value 7 Kemerton refinery Albemarle Corporation Lithium $1.0bn
is worth $21 billion, research by of $6.45 billion.
Business News has found (see list). The planned 100,000 tonnes 9 Greenbushes expansions Talison Lithium Lithium $836m
Of 57 major mining projects per annum lithium hydroxide
8 West Angelas C & D Rio Tinto Iron ore $800m
in the BNiQ database, a large plant at Wodgina, jointly owned
portion are poised to be commis- by Mineral Resources’ and 10 Kwinana refineries Tianqi Lithium Lithium $700m
sioned, with 24 under way and 16 US-based battery metals giant
classified as likely to proceed. Albermarle Corporation, tops FULL LIST ONLINE businessnews.com.au/List/project
FEATURE
7 IRON ORE PROJECTS WORTH $
115m COST INCREASE OF SHEFFIELD RESOURCES’
12.34bn
THUNDERBIRD PROJECT
$
13 LITHIUM PROJECTS WORTH
6.45bn $
8 GOLD PROJECTS WORTH
$
1.19bn
4 MINERAL SANDS PROJECTS WORTH
$
1.01bn
OFF-TRACK: Sheffield Resources increased the capital expenditure estimate for its
Thunderbird project to $463 million.
the lithium list, with an expected Kemer ton w ill have an Combined, Tianqi anticipates in the second quarter of 2019, as to changes in the scope of works,
cost of about $2.2 billion. expected initial capacity of the two stages will produce planned. added costs associated with
The Wodgina lithium plant 40,000tpa of lithium hydroxide 72,000tpa of lithium hydroxide. In November, Pilbara Min- extreme weather conditions,
encompasses two 50,000tpa when it is commissioned in 2021, While there has been a surge erals’ $231 million stage two design changes and increases in
lithium hydroxide modules, reaching full capacity in 2025. of activity around lithium Pilgangoora expansion was the schedule of rates.
with the first scheduled to Kidman Resources’ proposed hydroxide projects, lithium approved, with commissioning Other cost pressures included
be completed in 2022 and the $613 million Kwinana lithium concentrate developments are of the stage targeted for the increased charges for certain
second at a later date. hydroxide refinery received also attracting substantial March quarter of 2020. A $225 equipment, along with employ-
Albermarle has been busy in a shot in the arm earlier this investment. million stage three expansion ment changes due to a tighter
WA over the past few months, month when conglomerate Tianqi’s 51 per cent-owned is also planned. labour market and increases in
with construction recently kick- Wesfarmers launched a $776 subsidiary, Talison, (Albermarle In March, Pilbara said it was camp and certain logistical costs.
ing off at its Kemerton lithium million takeover bid for the Mel- 49 per cent) resolved a cru- considering selling between 20 Gold Road indicated about
hydroxide plant. bourne-based company. cial legal battle in March with per cent and 49 per cent of the three months prior to the cost
In late March, Premier Mark The refinery is expected to Global Advanced Metals, after $646 million Pilgangoora con- revision the project would come
McGowan joined new US Ambas- be commissioned in 2021 and the Massachusetts-owned com- centrate project, as it declared in at the upper end of the capital
sador to Australia, Arthur produce 45,000tpa of lithium pany said a proposed expansion commercial production from cost estimate of between $506
Culvahouse, federal Trade hydroxide, using ore from the to Talison’s Greenbushes opera- the processing plant. million and $585 million, after
Minister Simon Birmingham planned $450 million Mt Hol- tion could potentially sterilise initially estimating a $532 mil-
and Albemarle representatives land mine. and waste tantalum resources Big project cost rises lion expenditure.
to turn the first sod on the Kidman has a 50 per cent inter- it received from Greenbushes. While many projects are being Gruyere dwarfs the second
construction, which the state est in the project, with the other The resolution means Tal- completed on budget, each of the largest gold project in the state,
government said was expected half owned by Sociedad Quimica ison’s $516 million stage two state’s single largest projects Capricorn Metals’ $133 million
to cost at least $1 billion. y Minera de Chile S.A., one of the expansion of Greenbushes will in the pipeline for gold, nickel, Karlawinda project, which is
However, Albermarle has world’s largest producers and go ahead, with expected com- mineral sands and potash all located south-east of the town
not disclosed exact financial marketers of lithium product. pletion to bring output to 1.95 experienced significant capital of Newman, and is projected to
details, and many believe the The refinery will be almost a milliion tonnes of lithium con- cost increases over the past year. be commissioned in the third
actual cost will be closer to the stone’s throw away from Tianqi centrate per annum. Gold Road Resources and quarter of 2019.
Wodgina figure. Lithium’s Kwinana lithium Earlier this month, it also Gold Field’s 50-50 Gruyere gold Western Areas’ definitive
It is set to create 500 con- hydroxide refinery. Tianqi com- received Environmental Protec- project, which is set to be com- feasibility study on its Odys-
struction jobs and another 100 missioned its $400 million stage tion Authority recommendation missioned this quarter, had its seus nickel project, released in
operational jobs in the South one development in January, for its stages three and four capital cost revised to $621 mil- October, detailed a capital cost
West. The plant has approval and stage two is set to be com- expansions to proceed. lion in July. of $299 million.
to produce up to 100,000tpa of pleted by the end of the year, at The $320 million stage one The company said the upgrade
lithium hydroxide. a cost of $300 million. expansion is due to be completed in costs included $30 million due Continued next page
FEATURE MINING PROJECTS
$
700m
COST OF IRON BRIDGE
PILOT PLANT
LOSS: FMG expects its Iron Bridge project will perform better than other magnetite projects such as Karara (pictured). Photo: Attila Csaszar
Billions pour into 100,000 tpa
it does not join WA’s magnetite
graveyard.
FMG’s main competitors, BHP
WA’s top 10 Group and Rio Tinto, have also
been making moves that have EXPECTED OUTPUT OF
kept iron ore at the top of WA’s LITHIUM HYDROXIDE AT WOODGINA
From previous page projects list, buoyed by momen-
sulphate of potash project (see
tum from strong iron ore prices.
page 18), had it is capital cost
4.6bn
The capex within the DFS Early construction at Rio’s
increased from around $371
$
2021 BHP’s
increased between $99 mil- Robe River and West Angelas C
million to $587 million fol-
lion and $109 million from the & D projects, worth a combined
lowing a pre-feasibility study
pre-feasibility study range, $2.14 billion, started this year,
that detailed scope to increase
mainly due to the installation with first ore from both projects
of a shaft haulage system for
a n nu a l pr o duc t ion f r om
370,000tpa to 426,000tpa. slated for 2021. SOUTH FLANK
$68 million. First commercial produc- After approving its $3.5 billion SCHEDULED FOR COMPLETION
Odysseus is located 370 kilo- Koodaideri project in November,
tion is still a relatively distant
metres north-west of Kalgoorlie. Rio purchased a fleet of 20 auto-
target, estimated for the fourth
Also in October, mineral sands mated trucks from Caterpillar
quarter of 2022.
aspirant Sheffield Resources for the East Pilbara mine earlier is still on track to be completed last year.
revised the capital expenditure Nerves of steel this month. by May 2021. It has maintained a focus to
estimate for its Thunderbird BHP has also ramped up the It is set to produce 80 million commission its $300 million
It has been well documented
project, located 60 kilometres award of contracts on its $4.5 tonnes per annum. Marillana iron ore project, a
that WA’s only major magnetite
west of Derby, to $463 million. billion South Flank project, the Mineral Resources may have 50-50 joint venture with Hong
operations, CITIC Pacific Min-
It said the $115 million cap- most expensive mining project diverted some of its attention to Kong-based Brockman mining,
ing’s Sino Iron, and Ansteel and
ital cost blowout was due to in the state. lithium over the past few years, in the fourth quarter of 2020.
Gindalbie Metals’ Karara, have
changes in the scope of work The beneficiaries include a but it has made several moves in The iron ore market could
both suffered multi-billion
and the infrastructure own- string of WA-based companies, iron ore, including the acquisi- become more crowded and less
dollar losses.
ership model, and since this such as Decmil, Clough, Mona- tion of the Koolyanobbing mine centralised in the next few
However, this has not deterred
announcement its shares have delphous and NRW Holdings, as in the Yilgarn and BCI Minerals’ years, as several juniors assess
Fortescue Metals Group in its
nearly halved to 56 cents per part of its commitment to pro- Kumina deposit in the Pilbara restarting projects in WA.
hunt for a higher grade of iron
share, as of May 6. vide at least 75 per cent of the
ore, as it gave the green light to
The Thunderbird project is work to local businesses.
its 69 per cent-owned $4.4 billion
anticipated to start production South Flank is the only sub- SEARCH BHP Group
Iron Bridge project last month,
in 2020 with a 42-year mine life. stantial iron ore project BHP There are 1,068 results from our index of 98,614 articles,
$700 million of which was put
A g r i m i n’s La ke Mac k ay has in development in WA, and 9,788 companies and 35,995 people
towards a pilot plant to ensure
MINING PROJECTSFEATURE
Iron ore juniors back in game
The price rebound this year has sparked renewed mining interest
in a range of mothballed projects.
Adrian Rauso million tonnes of iron ore a year $0.71 levels, compared to around
adrian.rauso@businessnews.com.au Iron ore price businessnews.com.au/market-index/iron_ore_price/365 and is Brazil’s second largest $0.95 levels when the Nelson
mine. Bay project was last operating
A RESURGENT iron ore price 100 –
The iron ore price hit $US95/t in 2014,” the company said in a
has opened the door for several after the announcement. statement to the ASX.
SEARCHENGINE
junior miners in Western Aus- ...your key to WA business Mr McMahon said one of the But while there is evidently
tralia to revive idle projects. benefits in the current market ample opportunity on the
Price ($US)
Business News has identified was the export capacity avail- supply side, issues could arise
at least seven suspended iron 80 –
able at certain WA ports, after around demand for the product.
ore projects, most of them in major players like Mineral According to the latest sea-
WA, which small mining com- Resources diverted some of sonally adjusted data from the
panies are aiming to reopen. their attention to other projects Australian Bureau of Statistics,
Many of the projects were and commodities. iron ore exports to China fell by
squeezed out of the market and 60 –
Jul 18 Sep 18 Nov 18 Jan 19 Mar 19 May 19 “We operate in an area where $212 million in March, or 14 per
abandoned as the iron ore price there’s spare capacity on the rail cent, compared with the previ-
slid to a $US37 a tonne low in Northern Territory, and Ade- optimistic about the future for as well as at the port of Esper- ous month.
late 2015, after nudging all-time laide-based Havilah Resources junior iron ore miners. ance, which is an iron ore port,” However, while the overall
highs of more than $US190/t in received $100 million of invest- “The general consensus from he said. demand for iron ore in China
February 2011. ment to partially go towards what we believe is that it (the “Mineral Resources is doing remains volatile, the demand for
But over the past year, the its iron ore projects in South around 6.25 million tonnes, I
price has rebounded, boosted by Australia.
the fall in supply caused by Bra- But the majority of the activ-
zilian iron ore giant Vale SA’s ity has been in WA, as locally
tailings dam disaster at its Cór- based companies have sought to
rego do Feijão mine in January. seize the favourable conditions
Around $US19 billion was and revive projects. iron ore price) will stay around
wiped from Vale’s share price Jupiter Mines said in March these levels for quite a long
the next day, and the iron ore it was seeking to restart its time, which is obviously great,”
price surged from around Central Yilgarn operations in he told Business News. We believe … (iron ore prices) will
$US75/t to $US92/t in the week the eastern Wheatbelt, which But analysts have mixed
stay around these levels for quite a long
after the disaster because of comprises the Mount Ida and views on the price outlook.
anticipated short-to-medium- Mount Mason hematite projects Investment bank UBS has time, which is obviously great
term supply shortages. that were placed under care and downgraded its BHP share price - Nathan McMahon
Closer to home, the closure of maintenance in 2012 and 2014, forecast on the back of predic-
the Port Hedland port combined respectively. tions Vale will begin to regain its believe, and that rail is capable
with localised flooding in the Last month, Macarthur Min- lost production over the next year. of around 13 million tonnes.” high-grade iron ore of at least 62
area caused by cyclone Veron- erals selected Aurizon as the “We do not see spot iron ore of Mr McMahon said he believed per cent, with lower impurities,
ica in late March also created a rail haulage operator for its $226 approximately $US93 per tonne the main factor determining the is high, because it requires less
temporary supply gap. million Moonshine Magnetite as being sustainable and expect success of the operation would pollution-causing beneficiation,
Commonwealth Bank com- mine in the Yilgarn, which has prices to fall back over the next be the US dollar exchange rate. which is ideal for the country as
modities analyst Vivek Dhar been stuck in the pre-feasibility 12 months as Australian supply The board of Nedlands-based it ramps up its efforts on envi-
estimated the two events halted study stage since 2012. normalises and Brazilian supply Shree Minerals echoed Mr ronmental control.
up to 6 per cent of the world’s Also in the Yilgarn region, starts to recover,” UBS said. McMahon’s sentiment. In April Commonwealth Bank’s Mr
seaborne iron ore supply. Cazaly Resources appointed “We look for an average price it highlighted the exchange Dhar said the increased demand
West Perth-based small cap engineering consultants Avora of $US83 per tonne in 2019.” rate as a key reason behind the for high-grade ore would be a
Mount Gibson Iron has been a to assess advancing its Parker The WA Treasury’s latest iron planned restart of its Nelson long-term shift.
beneficiary of the price surge. Range project, which has been ore price assessment anticipates Bay mine in Tasmania, after it “While we expect that pre-
Last month it completed the $180 dormant since Cazaly com- the price returning to around ceased mining at the $25 million mium (for higher grades) to
million resurrection of its Koolan pleted a definitive feasibility $US66/t by 2020-21. operation in 2014. pull back slightly from current
Island mine, which contains ore study on it in 2010. However, the signs do not look “The iron ore prices in Aus- levels, we believe the broad
with a grade of 66 per cent. Cazaly joint managing direc- promising for a Vale comeback, tralian dollar terms have preference for higher-grade
It waved goodbye to the first tor Nathan McMahon said the as its mines face increasing reg- improved due to the exchange ores is a structural change in
iron ore shipment in about four $170 million project had all the ulatory scrutiny following the rate of AUD to USD at around the market,” he said.
years from the project. requisite permits, both environ- dam disaster.
Nathan River Resources, a mental and mining, with an iron Earlier this month, a Brazilian
subsidiary of London-based ore grade of 61.9 per cent. court overturned a decision to SEARCH Mount Gibson Iron
British Marine, is restarting Mr McMahon said he hated allow the restart of its Brucutu There are 405 results from our index of 98,614 articles,
the Roper Bar mine in the to forecast prices, but was mine, which produces about 30 9,788 companies and 35,995 people
OPEN: Mt Gibson Iron recently exported its first iron ore shipment from Koolan Island in about four years. Photo: Mt Gibson
FEATURE MOST
MINING
INFLUENTIAL
PROJECTS
TAILINGS DAM CONTRACTORS
SEARCHENGINE MINING SERVICES COMPANIES
...your key to WA business RANKED BY TOTAL STAFF IN WA
Change Offices
from Year a) WA
previous est. in Total staff b) inter-
Rank year Company name Senior executive and title WA in WA state Services offered Notable clients
Mr Jarvas Croome a) 9 Authorised Caterpillar dealer, machinery and construction
1 — WesTrac Chief Executive Officer 1989 1,400 b) 17 equipment, finance, maintenance and resale services Rio Tinto
Mr Mark Norwell Anglogold Ashanti, Independence Group,
2 — Ausdrill Managing Director 1987 1,148 Drill, blast, and exploration Gold Fields, Western Areas
Mr Stephen Easterbrook
3 — Pilbara Access Managing Director 2007 500 a) 2 Scaffolding and rope access labour, and equipment supplier Rio Tinto, BHP, Roy Hill
Hampton Mining Open pit mining, ore haulage, heavy equipment hire, heavy Northern Star, Westgold, Saracen,
Mr Bart Jones
4 — General Manager 2003 400 a) 2 haulage, potable water, drill and blast, crushing and screening, Kimberley Metals Group, Sandfire
and Civil road construction and maintenance Resources, Minjar Gold
Comprehensive rope access maintenance services for short or long term shutdowns Rio Tinto Iron Ore, Fortescue Metals
5 Tasman Rope Access Mr Brendan Halstead
General Manager 2015 350 a) 1
b) 2
and projects; Efficient means of access to difficult to reach areas of critical fixed plant
equipment; Inspection services including NDT testing; Full wear plate/liner installation Group, AngloGold Ashanti, Newmont,
Western Areas, Dampier Salt, Gold Fields
services; Crushing, screening, sampling, overland conveyor maintenance; ...
Mr Stewart Maddison Engineering, maintenance, preservation, manufacturing, BHP, Rio Tinto, FMG, Roy Hill, Nickel West,
6 Orontide Group Chief Executive Officer 1979 330 a) 5 fabrication Worsley Alumina, Newmont
Mr Craig Lindsay-Rae a) 2
7 Murray Engineering Managing Director 2006 290 b) 3 Electrical, mechanical, pumping, rental and automation ABB, Mako Mining
Mr Jeff Branson a) 3 Drilling and blasting, mineral sample drilling and water well
8 JSW Australia Chief Executive 2010 280 b) 1 drilling BHP, FMG, Alcoa, AMAL, Batchfire
Mr Laurie Barlow a) 1 Engineering and mining services in materials handling and
9 — FLSmidth Head of Mining, Australia 200 b) 5 mineral processing Rio Tinto
Immersive Mr Peter Salfinger a) 2 Supplier of surface and underground mining equipment
10 Technologies Chief Executive Officer 1993 170 b) 1 simulators for operator training to the global mining industry
11
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80
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: claire.byl@businessnews.com.au
WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
MOST
MINING
INFLUENTIALFEATURE
PROJECTS FEATURE
CRUSHING & SCREENING CONTRACTORS
SEARCHENGINE WA’S LARGEST MINING CONTRACTORS
...your key to WA business RANKED BY NO. OF MINNG CONTRACTING STAFF IN WA
Change Offices No. of No. of
from a) WA mine mining
previous Year est. b) inter- sites in contracting
Rank year Company name Senior executive and title in WA state WA staff in WA Current projects in WA
Northern Star: Jundee gold mine, Newcrest: Telfer, St Barbara: Gwalia Deeps, Gold Fields:
Mr Steve Coughlan a) 1
1 — Byrnecut Executive Chairman 1987 b) 1 6 NFP Athena at St Ives gold mine, Sandfire Resources: DeGrussa copper-gold mine, Ramelius: Water
Tank Hill
Mr Chris Tuckwell a) 1 Regis Resources: Garden Well, Moolart Well & Rosemont gold mines; Pilbara Minerals:
2 MACA Chief Executive Officer 2002 b) 1 7 1,334 Pilgangoora, Ramelius Resources: Mt Magnet, Blackham Resources: Wiluna, BHP: Area C
3 — Macmahon Holdings Mr Michael Finnegan
Chief Executive Officer 1964 a) 2
b) 2 4 1,206 Tropicana, Telfer, Mount Morgans
Mr Paul Muller AngloGold Ashanti: Sunrise Dam gold mine; Western Areas: Flying Fox & Spotted Quoll nickel
4 — Barminco Chief Executive 1989 a) 2 11 1,200 mines; Gold Fields: Agnew gold mine, New Holland D/D, Wallaby; Darlot; Plutonic D/D
Mr Mike Sutton Open cut mining projects currently include: Karara magnetite mine (Karara Mining), Christmas
a) 1
5 Downer Chief Operating Officer 1968 b) 2 25 900 Creek iron ore mine (Fortescue Metals Group), Roy Hill iron ore mine (Roy Hill), Sunrise Dam gold
Mining - West mine (AngloGold Ashanti)
Mr Abdul Jarrah Fortescue Metals Group: Solomon Hub iron ore project, BHP Billiton Nickel West: Rocky’s Reward
6 Thiess Executive General Manager, 1962 2 NFP Nickel Mine (Leinster)
Australia & Pacific
Mr Peter Cook Starlight (Fortnum), Paddies Flat/Jack Ryan/South Emu/Comet/Great Fingall/Big Bell (Central
7 Westgold Resources Managing Director 2016 a) 1 8 400 Murchison, HBJ (South Kalgoorlie)
RUC Cementation Mr Barry Upton
8 Mining Contractors Managing Director 1991 a) 2 2 350 Edna May, Mt Morgans
Swick Mining Mr Kent Swick
9 Services
Managing Director; CEO 2004 a) 1 12 350 Newmont: Tanami, Northern Star Resources: Jundee
(from Oct 2017)
Mr Franko Roberts a) 2
10 — GBF General Manager, IR & 1988 b) 2 2 300 Silver Lake Resources: Daisy Milano underground development and haulage
Sustainability
11
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25
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: claire.byl@businessnews.com.au
WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
FEATURE MINING PROJECTS
Potash players primed for sli
As land and
population
pressures drive
the need for
more productive
farming, WA
finds itself at the
centre of a new
mining race.
Adrian Rauso
adrian.rauso@businessnews.com.au
INTEREST and specialist
knowledge around sulphate of
potash was scarce in Australia
when Brett Hazleden and Brent
Smoothy co-founded Kalium
Lakes in October 2014.
“No one really knew much
about potash in Australia, Brent
and I did some sampling, and we
just suddenly fell into it and have
been learning ever since,” Mr
Hazleden, now Kalium’s manag-
ing director, told Business News.
At first glance, you may not be
able to tell Mr Hazelden has been
venturing into uncharted waters,
with development of Kalium’s
flagship Beyondie project.
The Balcatta-based outfit has MILESTONE: Brett Hazleden (left) and Mal Randall believe Kalium Lakes will be the first commercial producer of SOP in Australia.
rapidly progressed its 82 tonnes
per annum sulphate of potash Protection Authority recommen- price down for Australian farm- between 100,000tpa to 200,000tpa There is also a potential inter-
(SOP) operation, with plans to dation for approval and, after ers to purchase the product, will be required to meet demand national opportunity.
eventually ramp up to production a final investment decision is Integer Research estimates that in the country. A United Nations report has
of 164,000tpa and significantly made this half-year, the company
offset existing SOP imports into expects it will be the country’s
the Australian market. first commercial producer of
The project, located approxi- potash as it ramps up towards
mately 160 kilometres south-east nameplate production during
of Newman, has a capex of $216 next year.
million, and has received com- SOP, also known as potassium
mitments for around 91 per cent sulphate, is a fertiliser product
of its funding. and a premium version of muri-
German bank KFW has locked ate of potash (MOP).
in $102 million, $74 million is Compared with MOP, SOP
coming from the Northern Aus- produces higher yields per hec-
tralia Infrastructure Fund, and tare, encourages increased water
$20.8 million from UK-based pri- retention in crops and raises its There are supply gaps in the
vate equity firm Greenstone. resistance to the elements and
It has also signed a 10-year diseases. global market in excess of a million
offtake agreement with German Currently in Australia, only tonnes a year and, if you combine all of
salt and potash miner K+S, the about 75,000tpa of SOP is used
biggest producer outside of each year, as it is all imported, the potential Australian producers, you
China. primarily from Germany, Canada
might be getting close to that - Mark Savich
In April, it became the first or Russia.
potash project in Australia However, after domestic pro-
POTENTIAL: Argimin’s Lake Mackay is the largest undeveloped potash-bearing salt lake in
to receive Environmental duction starts and drives the
MINING PROJECTSFEATURE
ce of growing market
You can
have the best
gold mine, the
best iron ore
resource on the
planet, but if it’s
in the middle
of nowhere –
it’s not going to
happen - Mal Randall
this occurring in Asia. It also
estimates Asian populations will
grow by two billion people in the
next 30 years. SITE: Alwyn Vorster says a SOP project’s proximity to a port is a crucial factor.
Even in Australia this trend
is evident. According to World Lake Wells is the most devel- There are three SOP projects “There’s obviously the normal
Bank Group, from 1967 to 2016 oped prospect within Salt Lake’s in the state which exist below rush as soon as there’s something
the hectares of arable land per broader Goldfields Salt Lake Geraldton, however all three are that looks good, people are quick
person in the country fell from project, which is comprised of 11 currently early-stage exploration to jump on the bandwagon,” he
around 3.5 to 1.9. lakes stretching across around plays. said.
Photos: Gabriel Oliveria. Investor demand for SOP pro- 615 kilometres. Parkway Minerals and Bris- “But I think in the grand
jects increased in Australia as Reward Minerals was initially bane-based ActiveEX kicked off scheme of things there might
revealed the world has lost about this trend became more widely the trailblazer in the potash initial studies and drilling on be a couple of us who will get
30 per cent of arable land in the acknowledged. industry after it struck a native their projects in 2011 and 2009, up and running, some of the
past 30 years, a large portion of Several other potash projects title deal with Indigenous land respectively, with little advance- others – it’s like any other mine
have sprouted in WA and started owners in 2008 for its Lake Disap- ment made on them over the around the place, it might be
to gain momentum, while Kalium pointment SOP project, located years. too low grade, too far away from
has methodically ticked off pro- approximately 320 kilometres Trigg Mining, which is due infrastructure, and they’ll just
ject milestones. east of Newman. to list on the ASX next month, never get through the normal
But there are several prospec- But, the Nedlands-based junior will be hoping its $4.5 million hurdles.”
tive producers hot on Kalium’s has been hampered by an inabil- initial public offering will give
heels, including Australian ity to attract significant capital, it momentum to get its Laver- Location, location?
Potash, with its Lake Wells pro- with net cash of just $3.2 million ton Links development up and Kalium chairman Mal Randall
ject, 180 kilometres north of at the December quarter, and running. believes project location is a key
Laverton, scheduled for first pro- several delays at its project. The Keren Paterson-led Trigg indicator of success.
duction by the end of 2020. Most recently it had to sus- initially tried to list in 2018, but “There’s a lot of questions
The two-stage, $338 million pend an infill drilling program a weak capital market forced the asked along the lines of what’s
project is awaiting a green light that was 66 per cent completed company to temporarily shelve the difference between us
from the EPA. at the lake in September, after those plans. and the others, and really it’s
Salt Lake Potash is set to its amphibious machines became Outside of WA, Verdant Min- a tyranny of distance,” he told
release a mineral resource for its bogged and sometimes suc- erals is the most notable SOP Business News.
Lake Way project this quarter, cumbed to complete mechanical player, with its Karinga Lakes “You can have the best gold
which is situated approximately failure. and Lake Amadeus projects in mine, the best iron ore resource
300 kilometres west of Lake Wells Reward did make a positive the Northern Territory, but both on the planet, but if it’s in the
near Wiluna, and it is seeking to step in late January, when it was projects are yet to surpass the middle of nowhere – it’s not going
rapidly ramp up development for granted approval to have Lake feasibility study stage. to happen.”
a targeted first production in late Disappointment assessed by the Mr Hazelden said all this activ-
the world. Photo: Argimin
2021. EPA. ity was to be expected. Continued next page
FEATURE MOST
MINING
INFLUENTIAL
PROJECTS
Potash players primed for slice
of growing market Broome
From previous page
Mr Hazleden said Beyondie,
which is situated on a 2,400- BCI Minerals: Mardie
square kilometre site next to the First production aim: 2023
Great Northern Highway just
south of Newman, can effectively Agrimin: Lake Mackay
use all the back haulage trucks Exmouth First production aim:
going up to the town and coming Q4 2022
back empty. Reward Minerals: Lake Disappointment
“One of our other benefits is
First production aim: Q4 2023
we sit close to the Goldfields gas
pipeline and it’s a short route for
us to go in there,” he said. Kalium Lakes: Beyondie
BCI Minerals managing direc- First production aim: 2020
tor Alwyn Vorster agrees with
sentiment around the impor-
tance of location, and takes it a Australian Potash:
step further, suggesting the pro-
Salt Lake Potash: Lake Way
First production aim: Q4 2021 Lake Wells
ject’s distance from port is the
most crucial factor.
First production aim:
“All the other SOP projects H2 2020
currently being developed in
Australia are between around Geraldton
800 kilometres and 1,200 kilo-
metres to the closest port,” Mr
Vorster told Business News.
Parkway Minerals: Dandaragan Trigg Mining: Laverton Links
“So do the basic maths on 800
kilometres (of transport costs) … First production: N/A (still Kalgoorlie First production aim: N/A (still
in some cases there aren’t good in early exploration phase) in early exploration phase)
roads either that are being devel-
oped in those areas. Perth ActiveEx: Lake Chandler
“Our Mardie project is right on tonnes per annum of salt, along First production aim: N/A (still in early exploration phase)
the coast, with a planned jetty with an $87 million capital cost
right next to SOP and salt plants, for 75,000tpa of sulphate of
that would save between $50 and potash.
$100 per tonne in logistics costs.” BCI has a $35 million cash bal-
Esperance Map: Google Maps
Mardie is both a salt and SOP ance and receives royalties from
project, with SOP as a by-product the Mineral Resources-operated
of salt production, and is located Iron Valley iron ore project, as kilometres, Agrimin will save $8
approximately 80 kilometres the commodity’s market recov- million in lease fees in its first
south-west of Karratha. ers, which generated royalty “We’re using public infrastruc- year alone.
Mr Vorster worked with Mr earnings before interest, tax, Wyndham Port near the North- ture and we have a dedicated Mr Savich is hoping to pen-
Hazleden and Mr Randall at Iron depreciation and amortisation ern Territory border in sparse trucking fleet, which minimises etrate the existing Chinese
Ore Holdings, which BCI was for- of $5.6 million last financial year. desert. rehandling.” market, the biggest market in
merly known as when it was iron The project is still some way It is a remote location, even by The $587 million project is the world, with a more premium
ore-focused. off in order to accommodate WA mining standards. expected to yield 426,000tpa of product.
But after the iron ore bubble both the salt and SOP operations, But Agrimin managing direc- SOP and is slated for first pro- He said there was room for
burst, Mr Vorster said the com- with first production scheduled tor Mark Savich said the project, duction in the final quarter of all of the WA producers in the
pany set out to diversify in order for at least 2023, meaning BCI is which is the largest undeveloped 2022. current market, but the potash
to avoid another near-death not near the front of the pack for potash-bearing salt lake in the The large scale of the project boom would not be limited to
experience. first SOP production in Australia. world and the largest salt lake meant Agrimin was one of the Australia, which could create
“For the next one-and-a-half to But with an enviable location in Australia, will generate signif- biggest winners from the state oversupply.
two years, BCI considered many, and financial position, Mr Vor- icant cost savings in production government’s changes to the “There are supply gaps in the
many opportunities, predomi- ster is confident BCI will not face and transport as the SOP prod- rental rates of potash projects, global market in excess of a mil-
nately in the industrial minerals the same “serious challenges” uct makes its way to Wyndham announced in December. lion tonnes a year and, if you
space, before we decided in 2018 many of the other producers will port. Due to the scale and long-life combine all of the potential Aus-
that the highest-value, long-term encounter to get their projects up “This involves loading very of potash projects, the existing tralian producers, you might be
opportunity was our own Mardie and running efficiently. high tonnages, we’ll be able to mining lease rental rate of $18.70 getting close to that,” he said.
project on the Pilbara coast,” he One project which does not load quad road trains with 140 per hectare was reduced to $2.32 “But there are also compara-
said. have the benefits of a prime tonnes, there’s a lot of economies per hectare for the first five ble peers in Ethiopia and Eritrea
The pre-feasibility study in location, is Agrimin’s Lake of scale in tonnages that big that years of the lease and $4.64 per which have very large projects,
June 2018 outlined a $248 million Mackay, which is located approx- allow us to get the costs down,” hectare from year six onwards. bigger than what we’ve seen in
investment to produce 3.5 million imately 785 kilometres south of Mr Savich told Business News. Spanning around 5,000 square Australia.”MINING PROJECTS
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