"This scenario includes an expansion of the Olympic Dam mine, with production to continue at Ranger and Beverley. Initial production from the Honeymoon project is assumed to commence in 2008. In addition the scenario assumes that a number of relatively small projects such as Energy Metals’ Bigrlyi project and Compass Resources’ Mount Fitch project in the Northern Territory commence production over the period to 2015.
Under this scenario, Australia’s production of uranium remains relatively steady at just over 10 000 tonnes of U308 a year over the period to 2012 as a slight decline in production at the Ranger mine is partially offset by the assumed commencement of production at the Honeymoon mine in 2008 (fi gure Q).
However, over the final three years of the forecast period, uranium production rises as production from Olympic Dam increases, following the completion of an assumed expansion. In 2014-15, Australia’s uranium mine production, under the no new mines scenario is forecast to be 14 329 tonnes of U3O8.
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Page 61: "new mines scenario"
This scenario builds on the majority of the assumptions in the no new mines scenario and assumes that state government policy regarding the development of new uranium mines in Queensland, South Australia and Western Australia is changed in 2008 and the policy of the current Australian Government remains in place. All projects that could realistically begin mine production in the period to 2015 are considered (see box 8) and include, among others, Summit Resources’ Valhalla project in Queensland, Mega Uraniums’ Ben Lomond project in Queensland, Marathon Resources’ Mount Gee project in South Australia and Nova Energy’s Lake Way and Centipede project in Western Australia. This scenario provides a useful indication of the potential upside for Australia’s uranium production to 2015, should this outcome eventuate and new markets for additional Australian uranium production are secured.
Under this scenario Australia’s uranium production still remains steady over the short term, but begins to increase from 2011 as a number of mines in Queensland, South Australia and Western Australia commence production (fi gure Q).
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Page 62: "Box 8 - status of Australia’s advanced uranium projects at July 2006 Continued"
Mount Fitch
Compass Resources’ Mount Fitch deposit is 55 kilometres south east of Darwin.
Drilling conducted by Compass in July 2006 estimated resources to be 2344 tonnes of U3O8. Compass believes that there is potential to increase the resource and will conduct further evaluations of the deposit during 2006. In addition, preliminary open pit mine engineering and process plant engineering are expected to commence before the end of 2006. Compass plans to develop the deposit with its copper, cobalt and nickel resources in the area and expect to benefit from the shared infrastructure (DITR 2006; Compass Resources 2006).
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