beattie can't see beyond qld., page-2

Subject sa next hot re market?
Posted 14/03/06 21:39 - 42 reads
Posted by big-lebowski
IP 210.10.xxx.xxx
Post #255582 - start of thread - splitview

Brad Crouch
12mar06

THE biggest mining project in history is set to transform South Australia
into the "Saudi Arabia of the south" as the boundaries and depth of the
Olympic Dam project grow by the day.

It has been revealed 16 drilling rigs, working round the clock trying to
determine the extent of one of the world's richest mines, so far have failed
to find the boundaries of the deposit.

The supposed edges of the field continue to return rich ore, while wells
sunk to 1200m are showing good returns. There now are plans to drill as deep
as 2km.

Estimates of the copper, uranium, gold and silver ore reserves have risen to
almost four billion tonnes.

Mine owner BHP Billiton puts the life of the mine at "70-plus years", but
Treasurer Kevin Foley said that was a conservative estimate.


"This will operate for more than a century and help turn SA into an economic
powerhouse," he said.

"Mining is the third pillar we need, along with manufacturing and
agriculture."

Industry experts say SA is poised to become the "Saudi Arabia of the south"
as an energy-hungry world looks to the mine which holds 40 per cent of
global uranium reserves as well as enormous copper, gold and silver lodes.

The proposed $5 billion expansion of the mine by 2013, turning it from an
underground operation to the biggest open pit in the world, would be the
biggest single such project in history and deliver a bonanza for SA from
royalties, taxes, infrastructure and more than 20,000 jobs.

It would turn the existing underground mine returning revenue of $1 billion
a year into an open pit, larger than the Adelaide CBD, returning $3 billion
annual revenue.

Revenue would triple to $3 billion a year, royalties to the State Government
would triple to $100 million and the projected annual contribution to the
Gross State Product of $2.5 billion is more than the nation's wool exports.

The plan includes a $700 million desalination plant and pipeline, and a $1
billion order for 110 of the biggest dump trucks in the world.

The plan faces several hurdles, ranging from its impact on the fragile
Outback environment to the political fallout of exporting uranium. If it
does proceed there also is the question of finding an army of skilled
workers.

A huge shortfall of workers means many are likely to be sourced from
overseas, while a bidding war has already erupted for graduates.

University students in mining courses in Queensland are being offered up to
$50,000 "sign on" fees by mining companies, then can walk into six-figure
salaries, a move likely to be mirrored in SA, according to industry experts.

Few people fully appreciate how the planned project will change SA,
according to Mr Foley.

"We've got strong manufacturing and agricultural sectors and this will be
the third pillar coming into its own," he said.

"This third economic pillar of a powerful mining industry will give us
economic firepower and muscle that states like Queensland have.

"No state will have a diversified economy like we have with powerful
manufacturing, rural and mining industries.

"The life of this mine will go on and on and most royalties will be ploughed
back into infrastructure in the north. There will be a need for schools,
medical facilities, roads, police, housing, and that means significant
numbers of new jobs.

Mr Foley said there might be "more Olympic Dams out there", a view backed by
the SA Chamber of Mines and Energy. "The level of exploration has quadrupled
in the past few years and these people don't do it unless they believe there
are big deposits to be found," he said.

A feasibility study of the planned expansion is under way, before an
environmental impact statement.