Resources hit back

A SIGNIFICANT number of large mining and oil and gas developments are under way in and around Geraldton as the sector emerges from the shadow of the failed $2 billion Kingstream iron and steel project.

Despite a long history of mining in the region, the resources sector has not fully captured the port city’s imagination.

More recently there has been a concerted effort by the city, which is more commonly associated with fishing and farming, to try and take advantage of the region’s mining industry.

The WA Chamber of Minerals and Energy director of policy and external relations, David Parker, said there had been significant investment in the Mid-West in recent years – one of the most diversified and significant resource provinces in WA.

“The Mid-West as a resource province is set to grow significantly in the short to medium term,” he said.

Iron ore and oil and gas are commodities currently attracting a lot of attention in the region.

Mt Gibson Iron and Mid West Corporation are picking up the pieces from where Kingstream left off two years ago.

Mt Gibson just started mining and shipping 1,000,000 tonnes of iron ore a year (mtpa) from Geraldton, while Mid West plans to ship between 1mtpa and 2mtpa of iron ore by the end of the year.

Both have plans for multi-million dollar downstream iron ore processing plants in the region.

Mid West chief executive officer Stephen De Belle said his company had talked to both Asia Iron and Mt Gibson, but would not comment on speculation about joint downstream processing facilities.

It also is understood that Perth-based Gindalbie Gold, which holds prospective iron ore tenements in the region, is currently deciding whether to retain possession or spin its ground off.

Essential to the iron ore development has been a $103 million upgrade to the Geraldton port, which allows for bigger iron ore ships as well as other regional infrastructure upgrades, and the development of the Dampier to Bunbury natural gas pipeline.

About 65 kilometres from Geraldton, success by several oil and gas players in the Perth Basin is transforming Dongara’s traditional fishing and farming industry base.

Arc Energy has made three onshore discoveries in the past 18 months and, in joint venture, is producing about 7,000 barrels of oil a day. Gas is also being produced and being fed into the Dampier to Bunbury Pipeline.

About a year ago Roc Oil, also in joint venture with others, including large American company Apache Energy, made the significant Cliff Head oil discovery about three kilometres offshore.

An engineering and feasibility study to bring the oil back onshore is being undertaken.

The iron ore and oil and gas projects are not the only ventures capitalising on the updated infrastructure and renewed investment focus in the region.

Newmont Australia is currently investigating a ramp-up at Golden Grove with a possible four new declines said to be planned for the mine.

Further south of Geraldton, Rio Tinto’s wholly-owned subsidiary, Luzenac Australia, is planning to spend about $20 million dollars during the next three to four years on upgrades to its Three Springs Talc mine and new processing facilities.

Other new projects in the region include Perth company GKM Mineral’s $30 million proposed Kaolin clay mining operation at nearby Perenjori.

Kaolin Clay, which is very pure, will be processed onsite into aluminum and silicate oxides and shipped in containers from Geraldton to specialist US alumina company, AluChem.

Further inland, Ivernia West, with joint venture partner Sentient, is set to begin construction of a lead mining operation near Wiluna, about 740km north-east of Perth. The mine will produce an average of 70,000t per year of lead concentrate, which will be shipped from Geraldton.

“The Mid-West as a resource province is set to grow significantly.”

-         David Parker