Discovery 021 2002-02

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DISCOVERY V I C T O R I A ’ S

E A R T H

R E S O U R C E S

J O U R N A L

F E B R U A R Y

2 0 0 2

Enterprise Information Discovery Dryden Technologies MapXtreme solutions gives your organization data mining and analysis through a simple web browser. Easy Mapping Make simple mapping more accessible to all by using a Dryden

INSIDE THIS ISSUE

solution with MapInfo MapXtreme. HEAD OFFICE: Suite 5, 412 Toorak Road Toorak Victoria 3142 Telephone: 03 9804 7500 Facsimile: 03 9827 0473 E-mail [email protected] Internet www.drydentech.com

OTWAYS YIELD MORE GAS

®

MapInfo Strategic Partner & Technology Partner

ALCOA CONQUERS SPL BENDIGO RESUMES DECLINE

BASIN STUDIES GROUP PETROLEUM DEVELOPMENT BRANCH MINERALS AND PETROLEUM VICTORIA

NEW FROM NRE’S PETROLEUM DEVELOPMENT BRANCH

DISCOVERY V I C T O R I A’ S

E A RT H

R E S O U R C E S

J O U R N A L

F E B R U A RY

2 0 0 2

contents NEW POT PROCESS IS A WORLD FIRST

2

Alcoa conquers an environmental headache

OTWAY BASIN YIELDS MORE GAS

5

Santos and Beach continue their run of exploration successes

PERSEVERANCE CONTINUES TO DIG DEEP

8

Perseverance Mining raises extra funds

BENDIGO DECLINES AGAIN - GLADLY

9

BM resumes work on its Swan Decline

RUTILE PLANT FOR PORTLAND

10

Another boost for Victoria as a major mineral sands processing centre

GASNET FLOAT FIRES UP INVESTORS

17

cover picture

Gasnet raises $260m and lists on the ASX

GOLD COUNCIL MOVES TO MELBOURNE

19

A new boost to Victoria’s expanding gold industry

3D LOOK AT VIC COAL AREAS

Gold mining is re-emerging as an important and expanding sector of Victoria’s mining industry. New discoveries at Bendigo, Costerfield, Stawell and other centres have convinced many industry leaders that Victoria could see another ‘golden era’ which will add to the state’s rich history as one of the world’s greatest gold producing regions.

20

New digital technology will help brown coal development

PIPELINE RACE NEARS FINISH

21

Victoria and SA will benefit from the result

GSV CELEBRATES 150TH

24

Some of that history is beautifully depicted in the recreated Red Hill Mine at Ballarat’s awardwinning outdoor museum, Sovereign Hill. The Red Hill mine was famous for its deep leads and as the source of the Welcome Nugget which, at almost 69 kilograms, remains, to this day, as the second largest gold nugget ever found.

Geologists continue to play a key role in our mining industry

VICTORIA PETROLEUM ATLAS OF

MALDON SEARCHES OLD FOR NEW

26

New owners take a new look at Nuggetty Reef

SCIENTISTS SLICE INTO OUR CRUST

27

Northern Victoria goes under the microscope

MAGNESIUM PLANT STUDY

AUSTRALIA

28

The Latrobe Valley could win an $800m development project

regular features VIEWPOINT

DISCLAIMER: This publication may be of assistance to you, but the State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

7

Minister Candy Broad says the resource industry is entering a ‘new era’

november 2001

NEWS BRIEFS

Energy and Minerals Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, does not endorse or imply endorsement by the Department of Natural Resources and Environment of any product or service offered by the contributors.

12

A roundup of industry news

THE PETROLEUM ATLAS OF VICTORIA This publication summarises the results of regional geological work carried out by the Basin Studies Group of the Petroleum Development Branch. It contains a compilation of new maps and digital images that provide an overview of the geological controls on hydrocarbon occurrences in the Otway and Gippsland basins. The Atlas costs $150 (for hard copy and CD-ROM) or $100 (for CD-ROM only)

RESOURCES MAP TO ORDER CONTACT: Dee Ninis, Petroleum Development Branch, Level 7, 250 Victoria Parade, East Melbourne, Victoria 3002 Tel (03) 9412 5169. Fax (03) 9412 5156. Email: [email protected] or Minerals and Petroleum Business Centre, Level 8, 240 Victoria Parade, East Melbourne, Victoria 3002 Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected]

14

All photographs, maps, charts, tables and written information in this publication are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permission of the Department of Natural Resources and Environment.

Victoria’s mineral, oil and gas resources

MINERAL LICENCE REVIEW

16

Who’s doing what with exploration licences

© Minerals and Petroleum Victoria 2002.

Published quarterly on behalf of the Energy and Minerals Division of the Department of Natural Resources & Environment. Editorial and advertising enquiries to Rex Banks, RBA Communications, 86 Cooloongatta Rd, Camberwell Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail: [email protected] Editorial: Rex Banks. Distribution and NRE enquires to Chandri Nambiar, Manager Marketing Development, Energy and Minerals Division, Department of Natural Resources & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website: Australia Post Print Publication PP349472/00128. ISSN Number 13282409.

1

BASIN STUDIES GROUP PETROLEUM DEVELOPMENT BRANCH MINERALS AND PETROLEUM VICTORIA

NEW FROM NRE’S PETROLEUM DEVELOPMENT BRANCH

DISCOVERY V I C T O R I A’ S

E A RT H

R E S O U R C E S

J O U R N A L

F E B R U A RY

2 0 0 2

contents NEW POT PROCESS IS A WORLD FIRST

2

Alcoa conquers an environmental headache

OTWAY BASIN YIELDS MORE GAS

5

Santos and Beach continue their run of exploration successes

PERSEVERANCE CONTINUES TO DIG DEEP

8

Perseverance Mining raises extra funds

BENDIGO DECLINES AGAIN - GLADLY

9

BM resumes work on its Swan Decline

RUTILE PLANT FOR PORTLAND

10

Another boost for Victoria as a major mineral sands processing centre

GASNET FLOAT FIRES UP INVESTORS

17

cover picture

Gasnet raises $260m and lists on the ASX

GOLD COUNCIL MOVES TO MELBOURNE

19

A new boost to Victoria’s expanding gold industry

3D LOOK AT VIC COAL AREAS

Gold mining is re-emerging as an important and expanding sector of Victoria’s mining industry. New discoveries at Bendigo, Costerfield, Stawell and other centres have convinced many industry leaders that Victoria could see another ‘golden era’ which will add to the state’s rich history as one of the world’s greatest gold producing regions.

20

New digital technology will help brown coal development

PIPELINE RACE NEARS FINISH

21

Victoria and SA will benefit from the result

GSV CELEBRATES 150TH

24

Some of that history is beautifully depicted in the recreated Red Hill Mine at Ballarat’s awardwinning outdoor museum, Sovereign Hill. The Red Hill mine was famous for its deep leads and as the source of the Welcome Nugget which, at almost 69 kilograms, remains, to this day, as the second largest gold nugget ever found.

Geologists continue to play a key role in our mining industry

VICTORIA PETROLEUM ATLAS OF

MALDON SEARCHES OLD FOR NEW

26

New owners take a new look at Nuggetty Reef

SCIENTISTS SLICE INTO OUR CRUST

27

Northern Victoria goes under the microscope

MAGNESIUM PLANT STUDY

AUSTRALIA

28

The Latrobe Valley could win an $800m development project

regular features VIEWPOINT

DISCLAIMER: This publication may be of assistance to you, but the State of Victoria and its officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

7

Minister Candy Broad says the resource industry is entering a ‘new era’

november 2001

NEWS BRIEFS

Energy and Minerals Victoria acknowledges contributions made by private enterprise. Acceptance of these contributions, however, does not endorse or imply endorsement by the Department of Natural Resources and Environment of any product or service offered by the contributors.

12

A roundup of industry news

THE PETROLEUM ATLAS OF VICTORIA This publication summarises the results of regional geological work carried out by the Basin Studies Group of the Petroleum Development Branch. It contains a compilation of new maps and digital images that provide an overview of the geological controls on hydrocarbon occurrences in the Otway and Gippsland basins. The Atlas costs $150 (for hard copy and CD-ROM) or $100 (for CD-ROM only)

RESOURCES MAP TO ORDER CONTACT: Dee Ninis, Petroleum Development Branch, Level 7, 250 Victoria Parade, East Melbourne, Victoria 3002 Tel (03) 9412 5169. Fax (03) 9412 5156. Email: [email protected] or Minerals and Petroleum Business Centre, Level 8, 240 Victoria Parade, East Melbourne, Victoria 3002 Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected]

14

All photographs, maps, charts, tables and written information in this publication are copyright under the Copyright Act and may not be reproduced by any process whatsoever without the written permission of the Department of Natural Resources and Environment.

Victoria’s mineral, oil and gas resources

MINERAL LICENCE REVIEW

16

Who’s doing what with exploration licences

© Minerals and Petroleum Victoria 2002.

Published quarterly on behalf of the Energy and Minerals Division of the Department of Natural Resources & Environment. Editorial and advertising enquiries to Rex Banks, RBA Communications, 86 Cooloongatta Rd, Camberwell Vic 3124 Tel: (03) 9889 1094 Fax: (03) 9889 9997 EMail: [email protected] Editorial: Rex Banks. Distribution and NRE enquires to Chandri Nambiar, Manager Marketing Development, Energy and Minerals Division, Department of Natural Resources & Environment, Level 7, 240 Victoria Parade, East Melbourne, Vic, 3002, Tel: (03) 9412 5061 Fax: (03) 9412 5155. Website: Australia Post Print Publication PP349472/00128. ISSN Number 13282409.

1

ENVIRONMENTAL SUCCESS

NEW POT PROCESS IS A WORLD FIRST

A

ustralia s leading aluminium producer, Alcoa of Australia, has developed a new, environmentally safe method of processing and reusing hazardous waste from its Portland (Victoria) smelter.

In a world-first development, the hazardous waste generated from aluminium smelting can now be processed, recycled and rendered harmless, eliminating the need to dump the previously untreated waste into landfills. The process is the result of an eight-year, $26 million, research and development program between Alcoa, Ausmelt Ltd and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) The material — Spent Pot Lining (SPL) — is one of the aluminium industry s biggest environmental headaches. SPL material is generated when the carbon and refractory lining of an aluminium smelting pot reaches the end of its serviceable life.

It is an unavoidable waste product of the electrolytic smelting process and is considered hazardous because it contains high levels of toxic fluoride and cyanide. More than 500,000 tonnes of SPL are produced worldwide each year. Traditionally, SPL is dumped in landfills or stockpiled awaiting a suitable treatment recycling process. Some countries have banned the dumping of SPL in landfills because of environmental concerns. The manager of Alcoa s Spent Pot Lining project, Ken Mansfield, said that the new process economically and technically destroyed the hazardous nature of SPL and recovered the valuable fluoride components of the SPL as reusable aluminium fluoride. The process solves the aluminium industry s longest, largest and most perplexing environmental problem by successfully treating the industry s inherent hazardous waste product, SPL, he added.

The new process converts SPL into both aluminium fluoride and a granulated synthetic sand slag product, which Alcoa says is not harmful to the environment or to human health. The aluminium fluoride is re-used in the aluminium metal smelting process, reducing costs by replacing expensive imported chemicals that are normally required. And, Victoria s Environment Protection Authority (EPAV) is evaluating the synthetic sand for use in commercial applications such as road making and concrete. It is anticipated the synthetic sand will be acceptable to the EPA for specific end uses, Mr Mansfield said. With EPA acceptance for these end uses, the Alcoa Portland SPL Process will have treated the hazardous waste material successfully and converted it into non-hazardous useful products. The first testwork on the Alcoa Portland SPL Process began in 1992 with investigations into the suitability of Ausmelt s submerged lance furnace technology for treating SPL. Portland Aluminium, Alcoa and Ausmelt subsequently worked together on trials at Ausmelt s Dandenong research facility until 1994. This led to the development of an Ausmelt pyrometallurgical process to combust and melt the SPL and produce a slag product and a gas laden with hydrogen fluoride (HF). Ausmelt s top submerged lance system is a high-intensity furnace reactor where feed materials are mixed into a molten bath of slag that is vigorously agitated by the submerged injection of combustion gases and fuel.

Portland Aluminium is a joint venture, which is owned by Alcoa of Australia (55%), CITIC Australia Pty Ltd (22.5%) and Marubeni Australia Ltd (22.5%). The Portland smelter is one of the largest aluminium smelters in the Southern Hemisphere. Alcoa also owns the Point Henry aluminium smelter near Geelong and the brown coal mine and power station at Anglesea. Combined annual aluminium metal production capacity of the two smelters is more than 530,000 tonnes a year. Since its initial development, Alcoa has recognised the importance of social and environmental concerns about its location and operation and this awareness is entrenched as a part of the company’s operating culture.As a result, Portland smelter has achieved levels of fluoride emissions that approach world best practice while the operation has also worked hard to maintain and protect the rare species of plants that exist in the area. By reducing waste materials the smelter has cut the volume of material being dumped in landfills from more than 1000 cubic metres a month in 1989 to less than two cubic metres in 2001.

2

In treating SPL, the high operating temperatures, 1200 - 1250O C, provide the environment for the immediate destruction of cyanides and other reactive components in SPL. Heat that is required to melt the refractory-based components of the SPL and additional fluxes necessary to achieve a fluid slag, is primarily proThe production of aluminium metal has become far more environmentally benign through the development of a new recycling process which can be applied across aluminium smelters across the world. The new process, developed by Alcoa of Australia through a $A26 million research program at Alcoa's Portland smelter in Western Victoria (pictured above right) allows recycling and re-use of spent pot lining material. The research team was led by Alcoa’s Ken Mansfield (below right) which has worked since 1992 to commercialise the process.

vided by the combustion of the carbon components contained in the SPL.

product was added to the pots in Alcoa s Point Henry smelter in Geelong. This scoping trial indicated that the SPL AlF3 did not cause any unexpected or major detrimental results to the overall pot operation, including ratio control and metal quality.

The TSL process is robust enough to handle all of the pot components including ceramic tiles, silicon carbide and refractory bricks, Mr Mansfield said.

A larger trial was carried out in the Portland Aluminium pot rooms in July/August 2001. This extended trial on larger pots further reinforced the applicability of the SPL AlF3 product as a suitable replacement for commercial grade AlF3 feedstock, Mr Mansfield said.

Extensive work was also carried out to test different refractories in the actual furnace environment to achieve acceptable refractory life. The end result was achieved through the efforts of the SPL team to find the best combination of refractory and operating practices for the furnace. Furnace campaign life has been extended from weeks to approaching one year. Mr Mansfield said. Unexpected lance wear has occurred due to the aggressive gaseous environment in the upper-most section of the lance. Continual work to reduce this impact is being carried out by Portland Aluminium together with Ausmelt and other external resources, he added An extensive part of the research project was aimed at finding a technical and economical process to achieve the formation of aluminium fluoride from the valuable fluorides contained in SPL. Without a definite or definable plant,

Significantly, no increases in gaseous fluoride emission levels have occurred from the very low base characteristic of Portland Aluminium operations. This also results in the full recovery of fluorides evolved from the SPL pyrometallurgical process. the Portland Aluminium team embarked on its own design involving resources from within the Alcoa organisation and CSIRO, with highly successful results.

The final piece of the SPL processing puzzle was the ability to make the final furnace slag product a commercially useable commodity, meeting Victorian EPA guidelines.

Two major trials of the use of SPL generated AlF3 in aluminium smelting operations have now been carried out.

In 2000, Portland Aluminium undertook external work with CSIRO to investigate modified slag chemistries that would result in improved leachability results.

In June 1999, approximately 40 tonnes of

3

ENVIRONMENTAL SUCCESS

NEW POT PROCESS IS A WORLD FIRST

A

ustralia s leading aluminium producer, Alcoa of Australia, has developed a new, environmentally safe method of processing and reusing hazardous waste from its Portland (Victoria) smelter.

In a world-first development, the hazardous waste generated from aluminium smelting can now be processed, recycled and rendered harmless, eliminating the need to dump the previously untreated waste into landfills. The process is the result of an eight-year, $26 million, research and development program between Alcoa, Ausmelt Ltd and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) The material — Spent Pot Lining (SPL) — is one of the aluminium industry s biggest environmental headaches. SPL material is generated when the carbon and refractory lining of an aluminium smelting pot reaches the end of its serviceable life.

It is an unavoidable waste product of the electrolytic smelting process and is considered hazardous because it contains high levels of toxic fluoride and cyanide. More than 500,000 tonnes of SPL are produced worldwide each year. Traditionally, SPL is dumped in landfills or stockpiled awaiting a suitable treatment recycling process. Some countries have banned the dumping of SPL in landfills because of environmental concerns. The manager of Alcoa s Spent Pot Lining project, Ken Mansfield, said that the new process economically and technically destroyed the hazardous nature of SPL and recovered the valuable fluoride components of the SPL as reusable aluminium fluoride. The process solves the aluminium industry s longest, largest and most perplexing environmental problem by successfully treating the industry s inherent hazardous waste product, SPL, he added.

The new process converts SPL into both aluminium fluoride and a granulated synthetic sand slag product, which Alcoa says is not harmful to the environment or to human health. The aluminium fluoride is re-used in the aluminium metal smelting process, reducing costs by replacing expensive imported chemicals that are normally required. And, Victoria s Environment Protection Authority (EPAV) is evaluating the synthetic sand for use in commercial applications such as road making and concrete. It is anticipated the synthetic sand will be acceptable to the EPA for specific end uses, Mr Mansfield said. With EPA acceptance for these end uses, the Alcoa Portland SPL Process will have treated the hazardous waste material successfully and converted it into non-hazardous useful products. The first testwork on the Alcoa Portland SPL Process began in 1992 with investigations into the suitability of Ausmelt s submerged lance furnace technology for treating SPL. Portland Aluminium, Alcoa and Ausmelt subsequently worked together on trials at Ausmelt s Dandenong research facility until 1994. This led to the development of an Ausmelt pyrometallurgical process to combust and melt the SPL and produce a slag product and a gas laden with hydrogen fluoride (HF). Ausmelt s top submerged lance system is a high-intensity furnace reactor where feed materials are mixed into a molten bath of slag that is vigorously agitated by the submerged injection of combustion gases and fuel.

Portland Aluminium is a joint venture, which is owned by Alcoa of Australia (55%), CITIC Australia Pty Ltd (22.5%) and Marubeni Australia Ltd (22.5%). The Portland smelter is one of the largest aluminium smelters in the Southern Hemisphere. Alcoa also owns the Point Henry aluminium smelter near Geelong and the brown coal mine and power station at Anglesea. Combined annual aluminium metal production capacity of the two smelters is more than 530,000 tonnes a year. Since its initial development, Alcoa has recognised the importance of social and environmental concerns about its location and operation and this awareness is entrenched as a part of the company’s operating culture.As a result, Portland smelter has achieved levels of fluoride emissions that approach world best practice while the operation has also worked hard to maintain and protect the rare species of plants that exist in the area. By reducing waste materials the smelter has cut the volume of material being dumped in landfills from more than 1000 cubic metres a month in 1989 to less than two cubic metres in 2001.

2

In treating SPL, the high operating temperatures, 1200 - 1250O C, provide the environment for the immediate destruction of cyanides and other reactive components in SPL. Heat that is required to melt the refractory-based components of the SPL and additional fluxes necessary to achieve a fluid slag, is primarily proThe production of aluminium metal has become far more environmentally benign through the development of a new recycling process which can be applied across aluminium smelters across the world. The new process, developed by Alcoa of Australia through a $A26 million research program at Alcoa's Portland smelter in Western Victoria (pictured above right) allows recycling and re-use of spent pot lining material. The research team was led by Alcoa’s Ken Mansfield (below right) which has worked since 1992 to commercialise the process.

vided by the combustion of the carbon components contained in the SPL.

product was added to the pots in Alcoa s Point Henry smelter in Geelong. This scoping trial indicated that the SPL AlF3 did not cause any unexpected or major detrimental results to the overall pot operation, including ratio control and metal quality.

The TSL process is robust enough to handle all of the pot components including ceramic tiles, silicon carbide and refractory bricks, Mr Mansfield said.

A larger trial was carried out in the Portland Aluminium pot rooms in July/August 2001. This extended trial on larger pots further reinforced the applicability of the SPL AlF3 product as a suitable replacement for commercial grade AlF3 feedstock, Mr Mansfield said.

Extensive work was also carried out to test different refractories in the actual furnace environment to achieve acceptable refractory life. The end result was achieved through the efforts of the SPL team to find the best combination of refractory and operating practices for the furnace. Furnace campaign life has been extended from weeks to approaching one year. Mr Mansfield said. Unexpected lance wear has occurred due to the aggressive gaseous environment in the upper-most section of the lance. Continual work to reduce this impact is being carried out by Portland Aluminium together with Ausmelt and other external resources, he added An extensive part of the research project was aimed at finding a technical and economical process to achieve the formation of aluminium fluoride from the valuable fluorides contained in SPL. Without a definite or definable plant,

Significantly, no increases in gaseous fluoride emission levels have occurred from the very low base characteristic of Portland Aluminium operations. This also results in the full recovery of fluorides evolved from the SPL pyrometallurgical process. the Portland Aluminium team embarked on its own design involving resources from within the Alcoa organisation and CSIRO, with highly successful results.

The final piece of the SPL processing puzzle was the ability to make the final furnace slag product a commercially useable commodity, meeting Victorian EPA guidelines.

Two major trials of the use of SPL generated AlF3 in aluminium smelting operations have now been carried out.

In 2000, Portland Aluminium undertook external work with CSIRO to investigate modified slag chemistries that would result in improved leachability results.

In June 1999, approximately 40 tonnes of

3

EXPLORATION Two main products are generated from the Spent Pot Lining recycling process, Aluminium Fluoride (white powder) which is reused in the smelting process and synthetic sand, an inert product used in construction and road making.

DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT ENERGY AND MINERALS DIVISION CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150 Richard Aldous Executive Director Energy and Minerals Telephone: (03) 9412 4508 Fax: (03) 9412 4183 David Wallish Business Manager Telephone: (03) 9412 5137 DIVISION OF ENERGY POLICY: Richard Bolt Director Strategic Policy Energy Telephone: (03) 9637 8804 Fax: (03) 9637 8835 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5157 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521 Guy Hamilton Regional Manager Bendigo Telephone: (03) 5444 6697 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156 Kathy Hill Manager Petroleum Developments Telephone: (03) 9412 4208 Kourosh Mehin Manager Petroleum Resources Telephone: (03) 9412 5074 Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135

Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081

Otway Basin yields more gas ictoria’s onshore Otway Basin has yielded new gas reserves with one confirmed new discovery in the state’s southwest and a second potential oil and gas discovery still requiring final testing.

V

Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053 Geoff Collins Manager Petroleum Projects Telephone: (03) 9412 5095 MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152

The main concern is that residual fluoride and sodium, contained within the glassy slag material, does not leach out into the surrounding environment when in contact with water.

Rob King Manager Minerals and Petroleum Regulation Telephone: (03) 9412 5069

Of the fluoride in the form of HF gas that is passed to the aluminium fluoride reactor a maximum of 80% is converted and recovered as aluminium fluoride. The remainder of the fluoride, as HF gas, is absorbed and, recovered in the Portland Aluminium smelters dry scrubbers.

George Buckland Manager , Minerals and Petroleum Tenements Telephone: (03) 9412 4778

All SPL generated at the Portland smelter has been stored and will ultimately be processed using the new recycling process. Alcoa expects the plant to be operating at its annual design rate of around 12,000 tonne of SPL by early this year.

Graeme McLaughlan Manager, Northern Region Chief Mining Inspector Telephone: (03) 5444 6689

F O R M O R E I N F O R M AT I O N C O N TA C T:

Joan McGovern, PR & Landcare Manager Alcoa World Alumina Australia. Tel: (03) 5245 1257 Mobile 0438 303 417

John Mitas Manager, Southern Region Chief Inspector of Quarries Telephone: (03) 9412 5083

NEW ED FOR EMD

Doug Sceney Environmental Manager Telephone: (03) 9412 5107 Horacio Haag Manager, Petroleum Operations, Safety and Environment Telephone: (03) 9412 5101

ichard Aldous is the new Executive Director Energy and Minerals at the Department of Natural Resources and Environment. Mr Aldous was previously Executive General Manager – Exploration Technology and Development with Iluka Resources in Western Australia.

R

MINERALS AND PETROLEUM POLICY: John Lambert Manager , Minerals and Petroleum Policy Telephone: (03) 9412 5068

Iluka is a world leader in the titanium minerals industry and has extensive interests in the rapidly developing mineral sands industry in the Murray Basin. The company was formed in 1998 by a merger of Westralian Sands Limited, a major mining and minerals processing company, and RGC. The combined resources and technical expertise of the merged group created a formidable player in the titanium minerals production and processing industry.

INFORMATION: Janne Bonnett - Manager Minerals and Petroleum Reference Centre Telephone: (03) 9412 5022 Fax: (03) 9412 5157

Iluka’s core business is the production and processing of titanium minerals (ilmenite, leucoxene, and rutile) used in paint pigments and other protective coatings – and the mining and separation of zircon, used in ceramics and refractories. It also has major investments in tin, coal and quicklime.

Chandri Nambiar Manager Marketing Development Telephone: (03) 9412 5061 Fax: (03) 9412 5155

Before joining Iluka, Mr Aldous was Senior Planning Analyst and Business Development Manager with BHP and Group Manager Corporate Planning with Western Mining. 4

During January, the Santos/Beach Petroleum joint venture continued its run of successes in the Otway Basin by finding yet another commercial gas field in the Port Campbell region. The Buttress 1 wildcat well, 12 kilometres north west of the town of Peterborough, reached a total depth of 1730 metres and found a gas bearing reservoir totalling 46 metres thick in the Waare formation yielding a net pay zone of 18 metres.

THE EXERCISE HAD BEEN SUCCESSFUL IN FOUR OUT OF FIVE CRITERIA, ALTHOUGH THE CRUCIAL ABSENCE OF A COMMERCIAL GAS FIELD WAS A BLOW (Last year, the two companies drilled four successful wells in a row (plus a fifth success for Santos at Tregony-1) in one of the most successful campaigns ever conducted in the basin.) Essential Petroleum also discovered gas in two separate formations at its Port Fairy No.1 well, two kilometres north of Port Fairy, but tests produced inconclusive information about the quality of the reservoirs. Essential Petroleum’s managing director, John Remfry, said the well would be cased and suspended pending further evaluation.

Lakes Oil, Origin Energy, Woodside Petroleum and a number of other companies seeking gas in the coal beds of the Otway Basin.

Open-hole testing proved inconclusive after the well reached a total depth of 1550 metres and finding a number of gas zones, he said.

Much of the drilling focus will centre on Beach Petroleum and Santos Ltd which are planning more Otway Basin wells as the year progresses. The Buttress 1 gas discovery is located in rich territory in the Otway Basin.

Log analysis indicated that the sands tested in the Pebble Point and Paaratte Formations were of reservoir quality and hydrocarbon bearing.

It lies in permit PEP 154 just 1.5 km north of the Naylor 1 field and 1.8 km north west of the producing Boggy Creek 1 well.

“A cased-hole testing program will be developed and will commence after the well results have been fully evaluated,” Mr Remfry added.

Just to the east lies the Wallaby Creek gas field and the successes of last year which include the Mylor and Tregony fields.

He said that while the well was deemed to be dry, the well was far from disappointing. The exercise had been successful in four out of five criteria, although the crucial absence of a commercial gas field was a blow.

The Otway Basin is proving to be rich in gas, although oil reserves have so far eluded explorers. However, the consistent pattern of discoveries in the region is aiding Victoria’s drive to find and develop multiple sources of gas supply.

More wells in the Otway and other Victorian basins are planned in 2002 with wells likely to be drilled by Essential, Santos, Beach as well as

The planned development of large offshore gas reserves in the Otway Basin and the rapid growth in the gas pipeline network around the 5

A new dawn is breaking over Victoria's onshore Otway Basin with a host of new gas discoveries in recent months and many new wells planned in the future in the busiest exploration effort the region has ever experienced.

state has dramatically improved the security of the state’s gas supply, found to be wanting after the fatal gas plant explosion at the Longford gas plant in 1995. Seismic surveys are being conducted in the offshore part of the basin, while both Origin and Woodside are preparing new wells in a bid to extend the known reserves of the exciting Thylacine and Geographe discoveries. Over the Christmas/New Year period, Santos and Beach Petroleum drilled the Naylor South 1 well, northwest of Port Campbell in permit area PEP 154, but failed to find gas. Naylor South 1 was the first of a three-well program planned by the two companies and was followed by the nearby wildcat targets Buttress 1 and Naringal 1.

EXPLORATION Two main products are generated from the Spent Pot Lining recycling process, Aluminium Fluoride (white powder) which is reused in the smelting process and synthetic sand, an inert product used in construction and road making.

DEPARTMENT OF NATURAL RESOURCES AND ENVIRONMENT ENERGY AND MINERALS DIVISION CONTACT LIST: MINERALS BUSINESS CENTRE: Level 8, 240 Victoria Parade, East Melbourne Vic 3002 Australia Tel: +613 9412 5020 Fax: +613 9412 5150 Richard Aldous Executive Director Energy and Minerals Telephone: (03) 9412 4508 Fax: (03) 9412 4183 David Wallish Business Manager Telephone: (03) 9412 5137 DIVISION OF ENERGY POLICY: Richard Bolt Director Strategic Policy Energy Telephone: (03) 9637 8804 Fax: (03) 9637 8835 MINERALS BUSINESS CENTRE: Fax: (03) 9412 5157 Kim Ricketts Client Services Officer Telephone: (03) 9412 5103 GEOLOGICAL SURVEY VICTORIA: Fax: (03) 9412 5155 Phil Roberts Manager Geological Survey Victoria Telephone: (03) 9412 5035 Alan Willocks Manager - Geophysics Telephone: (03) 9412 5131 Peter O’Shea Manager Geological Mapping Telephone: (03) 9412 5093 Roger Buckley Manager Mineral Resources Telephone: (03) 9412 5025 Graham Gooding Regional Manager Ballarat Telephone: (03) 53 336 521 Guy Hamilton Regional Manager Bendigo Telephone: (03) 5444 6697 PETROLEUM DEVELOPMENT: Fax: (03) 9412 5156 Kathy Hill Manager Petroleum Developments Telephone: (03) 9412 4208 Kourosh Mehin Manager Petroleum Resources Telephone: (03) 9412 5074 Mike Woollands Manager Basin Studies Telephone: (03) 9412 5135

Maher Megallaa Manager Acreage Release Telephone: (03) 9412 5081

Otway Basin yields more gas ictoria’s onshore Otway Basin has yielded new gas reserves with one confirmed new discovery in the state’s southwest and a second potential oil and gas discovery still requiring final testing.

V

Bob Harms Manager Petroleum Information Telephone: (03) 9412 5053 Geoff Collins Manager Petroleum Projects Telephone: (03) 9412 5095 MINERALS AND PETROLEUM REGULATION: Fax: (03) 9412 5152

The main concern is that residual fluoride and sodium, contained within the glassy slag material, does not leach out into the surrounding environment when in contact with water.

Rob King Manager Minerals and Petroleum Regulation Telephone: (03) 9412 5069

Of the fluoride in the form of HF gas that is passed to the aluminium fluoride reactor a maximum of 80% is converted and recovered as aluminium fluoride. The remainder of the fluoride, as HF gas, is absorbed and, recovered in the Portland Aluminium smelters dry scrubbers.

George Buckland Manager , Minerals and Petroleum Tenements Telephone: (03) 9412 4778

All SPL generated at the Portland smelter has been stored and will ultimately be processed using the new recycling process. Alcoa expects the plant to be operating at its annual design rate of around 12,000 tonne of SPL by early this year.

Graeme McLaughlan Manager, Northern Region Chief Mining Inspector Telephone: (03) 5444 6689

F O R M O R E I N F O R M AT I O N C O N TA C T:

Joan McGovern, PR & Landcare Manager Alcoa World Alumina Australia. Tel: (03) 5245 1257 Mobile 0438 303 417

John Mitas Manager, Southern Region Chief Inspector of Quarries Telephone: (03) 9412 5083

NEW ED FOR EMD

Doug Sceney Environmental Manager Telephone: (03) 9412 5107 Horacio Haag Manager, Petroleum Operations, Safety and Environment Telephone: (03) 9412 5101

ichard Aldous is the new Executive Director Energy and Minerals at the Department of Natural Resources and Environment. Mr Aldous was previously Executive General Manager – Exploration Technology and Development with Iluka Resources in Western Australia.

R

MINERALS AND PETROLEUM POLICY: John Lambert Manager , Minerals and Petroleum Policy Telephone: (03) 9412 5068

Iluka is a world leader in the titanium minerals industry and has extensive interests in the rapidly developing mineral sands industry in the Murray Basin. The company was formed in 1998 by a merger of Westralian Sands Limited, a major mining and minerals processing company, and RGC. The combined resources and technical expertise of the merged group created a formidable player in the titanium minerals production and processing industry.

INFORMATION: Janne Bonnett - Manager Minerals and Petroleum Reference Centre Telephone: (03) 9412 5022 Fax: (03) 9412 5157

Iluka’s core business is the production and processing of titanium minerals (ilmenite, leucoxene, and rutile) used in paint pigments and other protective coatings – and the mining and separation of zircon, used in ceramics and refractories. It also has major investments in tin, coal and quicklime.

Chandri Nambiar Manager Marketing Development Telephone: (03) 9412 5061 Fax: (03) 9412 5155

Before joining Iluka, Mr Aldous was Senior Planning Analyst and Business Development Manager with BHP and Group Manager Corporate Planning with Western Mining. 4

During January, the Santos/Beach Petroleum joint venture continued its run of successes in the Otway Basin by finding yet another commercial gas field in the Port Campbell region. The Buttress 1 wildcat well, 12 kilometres north west of the town of Peterborough, reached a total depth of 1730 metres and found a gas bearing reservoir totalling 46 metres thick in the Waare formation yielding a net pay zone of 18 metres.

THE EXERCISE HAD BEEN SUCCESSFUL IN FOUR OUT OF FIVE CRITERIA, ALTHOUGH THE CRUCIAL ABSENCE OF A COMMERCIAL GAS FIELD WAS A BLOW (Last year, the two companies drilled four successful wells in a row (plus a fifth success for Santos at Tregony-1) in one of the most successful campaigns ever conducted in the basin.) Essential Petroleum also discovered gas in two separate formations at its Port Fairy No.1 well, two kilometres north of Port Fairy, but tests produced inconclusive information about the quality of the reservoirs. Essential Petroleum’s managing director, John Remfry, said the well would be cased and suspended pending further evaluation.

Lakes Oil, Origin Energy, Woodside Petroleum and a number of other companies seeking gas in the coal beds of the Otway Basin.

Open-hole testing proved inconclusive after the well reached a total depth of 1550 metres and finding a number of gas zones, he said.

Much of the drilling focus will centre on Beach Petroleum and Santos Ltd which are planning more Otway Basin wells as the year progresses. The Buttress 1 gas discovery is located in rich territory in the Otway Basin.

Log analysis indicated that the sands tested in the Pebble Point and Paaratte Formations were of reservoir quality and hydrocarbon bearing.

It lies in permit PEP 154 just 1.5 km north of the Naylor 1 field and 1.8 km north west of the producing Boggy Creek 1 well.

“A cased-hole testing program will be developed and will commence after the well results have been fully evaluated,” Mr Remfry added.

Just to the east lies the Wallaby Creek gas field and the successes of last year which include the Mylor and Tregony fields.

He said that while the well was deemed to be dry, the well was far from disappointing. The exercise had been successful in four out of five criteria, although the crucial absence of a commercial gas field was a blow.

The Otway Basin is proving to be rich in gas, although oil reserves have so far eluded explorers. However, the consistent pattern of discoveries in the region is aiding Victoria’s drive to find and develop multiple sources of gas supply.

More wells in the Otway and other Victorian basins are planned in 2002 with wells likely to be drilled by Essential, Santos, Beach as well as

The planned development of large offshore gas reserves in the Otway Basin and the rapid growth in the gas pipeline network around the 5

A new dawn is breaking over Victoria's onshore Otway Basin with a host of new gas discoveries in recent months and many new wells planned in the future in the busiest exploration effort the region has ever experienced.

state has dramatically improved the security of the state’s gas supply, found to be wanting after the fatal gas plant explosion at the Longford gas plant in 1995. Seismic surveys are being conducted in the offshore part of the basin, while both Origin and Woodside are preparing new wells in a bid to extend the known reserves of the exciting Thylacine and Geographe discoveries. Over the Christmas/New Year period, Santos and Beach Petroleum drilled the Naylor South 1 well, northwest of Port Campbell in permit area PEP 154, but failed to find gas. Naylor South 1 was the first of a three-well program planned by the two companies and was followed by the nearby wildcat targets Buttress 1 and Naringal 1.

EXPLORATION

VIEWPOINT

In addition to the exceptional burst of onshore activity, offshore Victorian exploration has also accelerated. A new seismic survey by the ship Geco Beta in the Gippsland Basin is the biggest 3D seismic survey ever conducted in the region.

Resource industry entering ‘new era’

Beach managing director, Reg Nelson said: “Depending on the success of this three-well program, we may schedule additional wells with the aim of further expanding our Otway Basin reserves.”

M

Beach’s original Naylor field discovery produced a gas column of more than 30 metres and commercial gas production from this well is expected to begin in the first quarter of 2002.

This international conference attracted over 300 petroleum geoscientists from around the globe, including several international industry and academic experts. The theme for the conference, which I had the pleasure of opening, was ‘A Refocussed Energy Perspective for the Future’.

The Naylor South-1 well is only one kilometre south-southeast of Naylor-1, one of four gas discoveries in the region last year involving Beach.

SEISMIC SURVEYS ARE BEING CONDUCTED IN THE OFFSHORE PART OF THE BASIN, WHILE BOTH ORIGIN AND WOODSIDE ARE PREPARING NEW WELLS IN A BID TO EXTEND THE KNOWN RESERVES OF THE EXCITING THYLACINE AND GEOGRAPHE DISCOVERIES “Our confidence in the gas prospectivity of the Port Campbell area is very high,” Mr Nelson said. The Port Fairy well, drilled by Essential Petroleum and Lakes Oil Ltd, was located in permit area PEP 152, just two kilometres north of Port Fairy township and only 12 km south of the Portland to Port Campbell gas pipeline. The prospect was geologically a simple, northeast trending anticline, exhibiting minor keystone style, crestal faulting. The prospect was formed in response to Late Cretaceous to early Tertiary east-west wrenching. The primary objective was sandstone in the Flaxman/Waarre formation with the Belfast Mudstone forming the seal. A secondary objective was the Nullawarre Greensand within the Belfast Mudstone. The Port Fairy 1 target was defined by a seismic survey with the well site located along one of the survey lines. Mr Remfry said, “The main target reservoir was sandstone in either the Flaxman or Waarre formations and the main risk on the prospect is the presence of sufficient sandstone to form an economic reservoir. However, it became apparent that while the Flaxman formation was present, the Waare formation was not. “The presence of seal, structure and hydrocarbon charge were all considered to be a low risk,” Mr Remfry added that, prior to drilling, the structure had the potential to hold recoverable gas reserves up to 37 billion cubic feet.

elbourne was recently host to the inaugural Eastern Australian Basin Symposium.

This is certainly the case from Victoria’s perspective, where we are entering a new era of exploration and utilisation of natural resources. Essential Petroleum held 84.41 per cent of the Port Fairy well with Lakes Oil NL holding the remaining 15.59 per cent. The well is the second in a proposed sevenwell exploration program by Essential Petroleum across the onshore Otway Basin. Essential Petroleum listed on the Australian Stock Exchange in February 2001 after raising $7.5 million and is the only listed oil and gas explorer with a prime focus on the Otway Basin.

F O R M O R E I N F O R M AT I O N C O N TA C T:

John Remfry Managing Director, Essential Petroleum Tel: (03) 9699 3009 E-mail: [email protected] or Reg Nelson Managing Director, Beach Petroleum NL Tel (08) 8338 2833 Mobile 0417 840 889

E X P L O R AT I O N DRILLING SET TO SOAR Wildcat drilling for oil and gas across Victoria and its offshore waters is set for a boom in 2002 with two wells already drilled and up to 14 new wells planned for the state in the remainder of this year. While the onshore portion of the Otway Basin is receiving particular emphasis, the Gippsland Basin, both onshore and offshore, will see a large number of wells drilled this year. Bass Strait Oil and Eagle Bay Resources, two exploration juniors, each have offshore wells planned. Bass Strait Oil is planning the Hemingway 1 wildcat in Bass Strait, which has a potential target of 324 million barrels. Eagle Bay’s Huki 1 well is a smaller play closer to shore, located about 10 km east of the previously drilled Hammerhead 1 well. It is also planning Scorpion 1 in permit area Vic P 41, looking for a one trillion cubic foot gas field. Bass Strait Oil is also planning the Omeo Updip 1 well, which will seek gas in the Golden Beach formation as a follow up to the previously drilled Omeo 1 well. Amity Oil and Pan Pacific are planning their Victorian debut well with Octopus 1 in Bass Strait, seeking a small 15 million barrel target adjacent to the earlier Amberjack 1 well. Adjacent to Victorian waters, in the Bass Basin, Origin Energy, AWE and CalEnergy are planning the Trefoil 1 wildcat located near the Yolla and White Ibis fields midway across Bass Strait. At the same time, the Yolla 3 appraisal well is expected to be drilled by the same group along with Santos. The Yolla field is being developed with the gas and petroleum liquids to be piped to Victoria for sale. Onshore, seven wells are proposed by Lakes Oil, Origin Energy, Essential Petroleum, Beach Petroleum, Santos Ltd and Victoria Petroleum. These are scattered between the Otway Basin and the onshore portion of the Gippsland Basin.

6

It was appropriate for Melbourne to host the inaugural Eastern Australasian Basins Symposium. After all, Melbourne is headquarters to a number of national and international companies, including world giants like BHP/Billiton, Exxon-Mobil, Shell, BP and other major utilities. The Victorian Government is working in partnership with many of these companies to provide the energy needs for now and for the future. Across government we are taking a balanced approach to decision making which aims to integrate sustainable economic growth with social development and environmental responsibility. This approach is already paying dividends. Investment in oil and gas exploration in this State has doubled to over $75 million over the past financial year, and this year is set to equal or exceed that level. This year has seen the highest expenditure on oil and gas exploration drilling in the State for a decade. I’m told that the potential expenditure in development and major pipeline projects involving Victoria could exceed $2 billion over the next five to six years. In the last 12 months Santos, Beach Petroleum, Origin Energy and Woodside Petroleum have all made major discoveries onshore and offshore in the Otway Basin in Victoria’s west. These discoveries in the Otway Basin have clearly revitalised the interest in Victoria’s and Tasmania’s exploration opportunities and placed this region on the world’s radar. As a world-class petroleum basin, Gippsland will continue to yield new fields, but these will be harder to find. Esso and BHPP have

returned to very active exploration in this last year with a gas discovery and are currently undertaking the largest seismic survey ever in southeast Australia. In the east of the State, another new major player, PanCanadian Petroleum Limited, was the successful bidder for two new offshore exploration permits in the Gippsland Basin. The company is planning to spend more than $76 million on exploration activities across the two permits over the next six years. We are determined to secure the long-term future of our petroleum supplies by encouraging world-class exploration for new oil and gas reserves through the provision of information to the global investment community. We want to ensure that the large amount of critical petroleum data held by the Government is properly protected and provided to industry in value-added formats.

The Bracks Government will continue to work in partnership with business to secure Victoria’s energy needs for now and for the future The importance of increased gas exploration and development throughout eastern Australasia cannot be overstated, with falling production of some of the long established fields and regions. Gas is now seen as a clean energy alternative and the nation-wide gas demand is expected to continue to increase. The Bracks Government will continue to work in partnership with business to secure Victoria’s energy needs for now and for the future.

Candy Broad Minister for Energy and Resources 7

EXPLORATION

VIEWPOINT

In addition to the exceptional burst of onshore activity, offshore Victorian exploration has also accelerated. A new seismic survey by the ship Geco Beta in the Gippsland Basin is the biggest 3D seismic survey ever conducted in the region.

Resource industry entering ‘new era’

Beach managing director, Reg Nelson said: “Depending on the success of this three-well program, we may schedule additional wells with the aim of further expanding our Otway Basin reserves.”

M

Beach’s original Naylor field discovery produced a gas column of more than 30 metres and commercial gas production from this well is expected to begin in the first quarter of 2002.

This international conference attracted over 300 petroleum geoscientists from around the globe, including several international industry and academic experts. The theme for the conference, which I had the pleasure of opening, was ‘A Refocussed Energy Perspective for the Future’.

The Naylor South-1 well is only one kilometre south-southeast of Naylor-1, one of four gas discoveries in the region last year involving Beach.

SEISMIC SURVEYS ARE BEING CONDUCTED IN THE OFFSHORE PART OF THE BASIN, WHILE BOTH ORIGIN AND WOODSIDE ARE PREPARING NEW WELLS IN A BID TO EXTEND THE KNOWN RESERVES OF THE EXCITING THYLACINE AND GEOGRAPHE DISCOVERIES “Our confidence in the gas prospectivity of the Port Campbell area is very high,” Mr Nelson said. The Port Fairy well, drilled by Essential Petroleum and Lakes Oil Ltd, was located in permit area PEP 152, just two kilometres north of Port Fairy township and only 12 km south of the Portland to Port Campbell gas pipeline. The prospect was geologically a simple, northeast trending anticline, exhibiting minor keystone style, crestal faulting. The prospect was formed in response to Late Cretaceous to early Tertiary east-west wrenching. The primary objective was sandstone in the Flaxman/Waarre formation with the Belfast Mudstone forming the seal. A secondary objective was the Nullawarre Greensand within the Belfast Mudstone. The Port Fairy 1 target was defined by a seismic survey with the well site located along one of the survey lines. Mr Remfry said, “The main target reservoir was sandstone in either the Flaxman or Waarre formations and the main risk on the prospect is the presence of sufficient sandstone to form an economic reservoir. However, it became apparent that while the Flaxman formation was present, the Waare formation was not. “The presence of seal, structure and hydrocarbon charge were all considered to be a low risk,” Mr Remfry added that, prior to drilling, the structure had the potential to hold recoverable gas reserves up to 37 billion cubic feet.

elbourne was recently host to the inaugural Eastern Australian Basin Symposium.

This is certainly the case from Victoria’s perspective, where we are entering a new era of exploration and utilisation of natural resources. Essential Petroleum held 84.41 per cent of the Port Fairy well with Lakes Oil NL holding the remaining 15.59 per cent. The well is the second in a proposed sevenwell exploration program by Essential Petroleum across the onshore Otway Basin. Essential Petroleum listed on the Australian Stock Exchange in February 2001 after raising $7.5 million and is the only listed oil and gas explorer with a prime focus on the Otway Basin.

F O R M O R E I N F O R M AT I O N C O N TA C T:

John Remfry Managing Director, Essential Petroleum Tel: (03) 9699 3009 E-mail: [email protected] or Reg Nelson Managing Director, Beach Petroleum NL Tel (08) 8338 2833 Mobile 0417 840 889

E X P L O R AT I O N DRILLING SET TO SOAR Wildcat drilling for oil and gas across Victoria and its offshore waters is set for a boom in 2002 with two wells already drilled and up to 14 new wells planned for the state in the remainder of this year. While the onshore portion of the Otway Basin is receiving particular emphasis, the Gippsland Basin, both onshore and offshore, will see a large number of wells drilled this year. Bass Strait Oil and Eagle Bay Resources, two exploration juniors, each have offshore wells planned. Bass Strait Oil is planning the Hemingway 1 wildcat in Bass Strait, which has a potential target of 324 million barrels. Eagle Bay’s Huki 1 well is a smaller play closer to shore, located about 10 km east of the previously drilled Hammerhead 1 well. It is also planning Scorpion 1 in permit area Vic P 41, looking for a one trillion cubic foot gas field. Bass Strait Oil is also planning the Omeo Updip 1 well, which will seek gas in the Golden Beach formation as a follow up to the previously drilled Omeo 1 well. Amity Oil and Pan Pacific are planning their Victorian debut well with Octopus 1 in Bass Strait, seeking a small 15 million barrel target adjacent to the earlier Amberjack 1 well. Adjacent to Victorian waters, in the Bass Basin, Origin Energy, AWE and CalEnergy are planning the Trefoil 1 wildcat located near the Yolla and White Ibis fields midway across Bass Strait. At the same time, the Yolla 3 appraisal well is expected to be drilled by the same group along with Santos. The Yolla field is being developed with the gas and petroleum liquids to be piped to Victoria for sale. Onshore, seven wells are proposed by Lakes Oil, Origin Energy, Essential Petroleum, Beach Petroleum, Santos Ltd and Victoria Petroleum. These are scattered between the Otway Basin and the onshore portion of the Gippsland Basin.

6

It was appropriate for Melbourne to host the inaugural Eastern Australasian Basins Symposium. After all, Melbourne is headquarters to a number of national and international companies, including world giants like BHP/Billiton, Exxon-Mobil, Shell, BP and other major utilities. The Victorian Government is working in partnership with many of these companies to provide the energy needs for now and for the future. Across government we are taking a balanced approach to decision making which aims to integrate sustainable economic growth with social development and environmental responsibility. This approach is already paying dividends. Investment in oil and gas exploration in this State has doubled to over $75 million over the past financial year, and this year is set to equal or exceed that level. This year has seen the highest expenditure on oil and gas exploration drilling in the State for a decade. I’m told that the potential expenditure in development and major pipeline projects involving Victoria could exceed $2 billion over the next five to six years. In the last 12 months Santos, Beach Petroleum, Origin Energy and Woodside Petroleum have all made major discoveries onshore and offshore in the Otway Basin in Victoria’s west. These discoveries in the Otway Basin have clearly revitalised the interest in Victoria’s and Tasmania’s exploration opportunities and placed this region on the world’s radar. As a world-class petroleum basin, Gippsland will continue to yield new fields, but these will be harder to find. Esso and BHPP have

returned to very active exploration in this last year with a gas discovery and are currently undertaking the largest seismic survey ever in southeast Australia. In the east of the State, another new major player, PanCanadian Petroleum Limited, was the successful bidder for two new offshore exploration permits in the Gippsland Basin. The company is planning to spend more than $76 million on exploration activities across the two permits over the next six years. We are determined to secure the long-term future of our petroleum supplies by encouraging world-class exploration for new oil and gas reserves through the provision of information to the global investment community. We want to ensure that the large amount of critical petroleum data held by the Government is properly protected and provided to industry in value-added formats.

The Bracks Government will continue to work in partnership with business to secure Victoria’s energy needs for now and for the future The importance of increased gas exploration and development throughout eastern Australasia cannot be overstated, with falling production of some of the long established fields and regions. Gas is now seen as a clean energy alternative and the nation-wide gas demand is expected to continue to increase. The Bracks Government will continue to work in partnership with business to secure Victoria’s energy needs for now and for the future.

Candy Broad Minister for Energy and Resources 7

GOLD NEWS

GOLD NEWS

Perseverance continues to dig deep

P

erseverance Mining has raised $A2.2 million through a placement of shares to fund the next stage of exploration of the deep sulphide ore at its Fosterville project near Bendigo.

endigo Mining has recommenced work to extend its Swan Decline beneath the city of Bendigo. This follows the injection $A50 million in equity capital in Bendigo Mining by the big South African gold producer, Harmony Gold Mining.

B

This follows the successful completion of the initial deep drilling program late last year. The cash will be used to fund the next stage of the deep sulphide program planned for the first half 2002 and to replenish working capital. The placement, which requires shareholder approval, has been fully subscribed and consisted of the issue of 44 million ordinary shares at 5 cents per share. The shares came with a free option for each new share exercisable at 5 cents at any time up until August 19, 2002. The exercise date will allow option holders to consider the results from the next stage of the deep sulphide drilling program, which will be detailed in the company’s second quarter report. Perseverance executive chairman, John Quinn, said that if satisfactory results came from the next phase of drilling, the cash to be raised from the options would fund a third round of exploration drilling. Perseverance has struggled financially since it stopped mining oxide resources last Above: Perseverance managing director, Mr John Quinn examines some of the latest drill core. Below: Perseverance Corporation’s dream of a major new gold mine based on the deep sulphide gold resources of the Fosterville region is coming slowly to fruition with new drilling revealing substantial new potential gold resources.

Bendigo declines again – gladly

December at Fosterville requiring the company to be recapitalised. Mr Quinn said: “This situation and the strong justification for follow-up drilling of the Fosterville sulphides based on the 2001 results, necessitated a further fundraising.” He added that the results obtained from the initial phase of the deep sulphide drilling program had provided strong encouragement. In addition, re-assaying of old sulphide drilling samples has indicated that approximately 250,000 oz of mineralisation has already been identified at grades approximately of around 6 grams of gold per tonne in the first 100 metres of the sulphide zone, below the base of oxidation. Mr Quinn said Perseverance was now focussed on defining an orebody to support mining. The company has set a minimum target of 500,000 ounces at 6 Au g/t. Such a resource could support a mine in the 300,000-500,000 tonnes a year range which could produce between 50,000 and 75,000 ozs annually, he added. “This target is achievable by success in the proposed two-stage 2002 drilling program and would provide a springboard for full feasibility in the first half of 2003,” Mr Quinn said.“With a positive outcome, progress to full project development would be possible in 2003.” The first round of deep sulphide exploration drilling produced some of the best results so far. The best included two intersections in the footwall of 3.8m at 12.85 Au g/t from 292.7m and 4m at 5.8 Au g/t from 197.8m. Hole SPD 29 intersected 1m at 1.13 Au g/t from 311.4m in the hanging wall and is interpreted to have been drilled beneath the ‘keel’ of the middle zone.

8

Hole 36 was drilled to locate extensions of the main central-north shoot and produced 5m at 7.87 Au g/t from 191m in the hanging wall. Mr Quinn said that this intersection indicated a shallow north plunge to this zone and provided an explanation for the lack of significant intersections in earlier holes drilled in the same area, which now appear to have been drilled beneath the plunge direction. Perseverance has also remodelled earlier drilling of the central-north shoot at a higher cutoff grade. The preliminary results from that exercise generated a combined measured and indicated sulphide resource at a 3 Au g/t cutoff, of 860,000 tonnes at 6.2 Au g/t containing 172,000 Au ozs. This modelling embraced the zone beneath the base of oxide mining to a depth of 120m and contained a zone previously modelled for open pit reserves. “The 3D computer modelling for resource reestimation clearly demonstrates the coherence and continuity of mineralised structures at the higher cutoff grade,” Mr Quinn said. “Remodelling of the rest of the open pit resources is in progress to incorporate the results of the recent drilling.” Mr Quinn added that the deep sulphide drilling program represented an outstanding success rate on a limited section of the overall mineralised structures at Fosterville.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Perseverance Corporation Limited Tel: 61 (03) 5439 7244 Web site: www.perseverance.com.au

The new equity capital will be used for the development of the New Bendigo Gold Project with the view to starting commercial gold production in 2003 at an annual rate of 100,000 ounces. Bendigo Mining managing director, Doug Buerger said, “With $50 million in the bank, we have recommenced work immediately to extend our decline. Our recent drilling has shown that the Deborah and Sheepshead reefs are open along strike. On its way to the targetted production areas, the new decline development will provide fresh drill platforms for further testing of these reefs early in the new year”. Bendigo Mining shareholders approved the share placement at the Bendigo annual meeting in December and also agreed to a two-year option enabling Harmony to invest another $A108 million. In the first part of the deal, 294.1 million shares were placed at 17 cents each giving Harmony 33.6 per cent of Bendigo Mining. The shareholders also approved the grant of 360 million options to Harmony to acquire shares in Bendigo at 30 cents per share, exerHarmony Gold Mining's representative, Ted Grobicki, has joined the Bendigo Gold board after Harmony contributed $A50 million to help re-develop the New Bendigo goldfield.

cisable at any time before 31 December 2003. If Harmony exercises all of its options it will end up with 52.9 per cent of Bendigo’s undiluted share capital and will inject a further $108 million into the company. Harmony has nominated Ted Grobicki to the Bendigo Mining board. Bendigo chairman, Peter Philip said, “We are fortunate to have Ted Grobicki who brings his considerable experience and Harmony’s sharp focus to Bendigo. Harmony brings with it a skill set which enhances Bendigo’s ability to add significant value to the next stage of the project’s development and we are incorporating their operational experience into the management team.” Mr Grobicki said, “We are excited about our participation in Bendigo. We share management’s and the board’s belief that Bendigo has the potential to become a very profitable, large-scale gold producer and we will be actively working with the Bendigo management team towards achieving the full potential of the goldfield as soon as possible.” 9

In the past decade, Bendigo Mining has identified a potential resource of more than 12 million ounces of gold. The additional $108 million from the exercise of Harmony’s options would be used to expand the overall capacity of the New Bendigo mine and assist Bendigo to achieve its goal of producing over 400,000 ounces of gold annually by 2007. Harmony already is one of the world’s top six gold producers, each year generating three million ounces of gold from its extensive interests in the Witwatersrand complex of South Africa. Harmony also produces approximately 220,000 ounces of gold from its operations in Western Australia and has a 22.9 per cent shareholding in the Australian gold mining company, Goldfields Limited. F O R M O R E I N F O R M AT I O N C O N TA C T:

Doug Buerger Managing director, Bendigo Mining NL Tel: (03) 5447 1834 Fax: (03) 5447 1835

GOLD NEWS

GOLD NEWS

Perseverance continues to dig deep

P

erseverance Mining has raised $A2.2 million through a placement of shares to fund the next stage of exploration of the deep sulphide ore at its Fosterville project near Bendigo.

endigo Mining has recommenced work to extend its Swan Decline beneath the city of Bendigo. This follows the injection $A50 million in equity capital in Bendigo Mining by the big South African gold producer, Harmony Gold Mining.

B

This follows the successful completion of the initial deep drilling program late last year. The cash will be used to fund the next stage of the deep sulphide program planned for the first half 2002 and to replenish working capital. The placement, which requires shareholder approval, has been fully subscribed and consisted of the issue of 44 million ordinary shares at 5 cents per share. The shares came with a free option for each new share exercisable at 5 cents at any time up until August 19, 2002. The exercise date will allow option holders to consider the results from the next stage of the deep sulphide drilling program, which will be detailed in the company’s second quarter report. Perseverance executive chairman, John Quinn, said that if satisfactory results came from the next phase of drilling, the cash to be raised from the options would fund a third round of exploration drilling. Perseverance has struggled financially since it stopped mining oxide resources last Above: Perseverance managing director, Mr John Quinn examines some of the latest drill core. Below: Perseverance Corporation’s dream of a major new gold mine based on the deep sulphide gold resources of the Fosterville region is coming slowly to fruition with new drilling revealing substantial new potential gold resources.

Bendigo declines again – gladly

December at Fosterville requiring the company to be recapitalised. Mr Quinn said: “This situation and the strong justification for follow-up drilling of the Fosterville sulphides based on the 2001 results, necessitated a further fundraising.” He added that the results obtained from the initial phase of the deep sulphide drilling program had provided strong encouragement. In addition, re-assaying of old sulphide drilling samples has indicated that approximately 250,000 oz of mineralisation has already been identified at grades approximately of around 6 grams of gold per tonne in the first 100 metres of the sulphide zone, below the base of oxidation. Mr Quinn said Perseverance was now focussed on defining an orebody to support mining. The company has set a minimum target of 500,000 ounces at 6 Au g/t. Such a resource could support a mine in the 300,000-500,000 tonnes a year range which could produce between 50,000 and 75,000 ozs annually, he added. “This target is achievable by success in the proposed two-stage 2002 drilling program and would provide a springboard for full feasibility in the first half of 2003,” Mr Quinn said.“With a positive outcome, progress to full project development would be possible in 2003.” The first round of deep sulphide exploration drilling produced some of the best results so far. The best included two intersections in the footwall of 3.8m at 12.85 Au g/t from 292.7m and 4m at 5.8 Au g/t from 197.8m. Hole SPD 29 intersected 1m at 1.13 Au g/t from 311.4m in the hanging wall and is interpreted to have been drilled beneath the ‘keel’ of the middle zone.

8

Hole 36 was drilled to locate extensions of the main central-north shoot and produced 5m at 7.87 Au g/t from 191m in the hanging wall. Mr Quinn said that this intersection indicated a shallow north plunge to this zone and provided an explanation for the lack of significant intersections in earlier holes drilled in the same area, which now appear to have been drilled beneath the plunge direction. Perseverance has also remodelled earlier drilling of the central-north shoot at a higher cutoff grade. The preliminary results from that exercise generated a combined measured and indicated sulphide resource at a 3 Au g/t cutoff, of 860,000 tonnes at 6.2 Au g/t containing 172,000 Au ozs. This modelling embraced the zone beneath the base of oxide mining to a depth of 120m and contained a zone previously modelled for open pit reserves. “The 3D computer modelling for resource reestimation clearly demonstrates the coherence and continuity of mineralised structures at the higher cutoff grade,” Mr Quinn said. “Remodelling of the rest of the open pit resources is in progress to incorporate the results of the recent drilling.” Mr Quinn added that the deep sulphide drilling program represented an outstanding success rate on a limited section of the overall mineralised structures at Fosterville.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Perseverance Corporation Limited Tel: 61 (03) 5439 7244 Web site: www.perseverance.com.au

The new equity capital will be used for the development of the New Bendigo Gold Project with the view to starting commercial gold production in 2003 at an annual rate of 100,000 ounces. Bendigo Mining managing director, Doug Buerger said, “With $50 million in the bank, we have recommenced work immediately to extend our decline. Our recent drilling has shown that the Deborah and Sheepshead reefs are open along strike. On its way to the targetted production areas, the new decline development will provide fresh drill platforms for further testing of these reefs early in the new year”. Bendigo Mining shareholders approved the share placement at the Bendigo annual meeting in December and also agreed to a two-year option enabling Harmony to invest another $A108 million. In the first part of the deal, 294.1 million shares were placed at 17 cents each giving Harmony 33.6 per cent of Bendigo Mining. The shareholders also approved the grant of 360 million options to Harmony to acquire shares in Bendigo at 30 cents per share, exerHarmony Gold Mining's representative, Ted Grobicki, has joined the Bendigo Gold board after Harmony contributed $A50 million to help re-develop the New Bendigo goldfield.

cisable at any time before 31 December 2003. If Harmony exercises all of its options it will end up with 52.9 per cent of Bendigo’s undiluted share capital and will inject a further $108 million into the company. Harmony has nominated Ted Grobicki to the Bendigo Mining board. Bendigo chairman, Peter Philip said, “We are fortunate to have Ted Grobicki who brings his considerable experience and Harmony’s sharp focus to Bendigo. Harmony brings with it a skill set which enhances Bendigo’s ability to add significant value to the next stage of the project’s development and we are incorporating their operational experience into the management team.” Mr Grobicki said, “We are excited about our participation in Bendigo. We share management’s and the board’s belief that Bendigo has the potential to become a very profitable, large-scale gold producer and we will be actively working with the Bendigo management team towards achieving the full potential of the goldfield as soon as possible.” 9

In the past decade, Bendigo Mining has identified a potential resource of more than 12 million ounces of gold. The additional $108 million from the exercise of Harmony’s options would be used to expand the overall capacity of the New Bendigo mine and assist Bendigo to achieve its goal of producing over 400,000 ounces of gold annually by 2007. Harmony already is one of the world’s top six gold producers, each year generating three million ounces of gold from its extensive interests in the Witwatersrand complex of South Africa. Harmony also produces approximately 220,000 ounces of gold from its operations in Western Australia and has a 22.9 per cent shareholding in the Australian gold mining company, Goldfields Limited. F O R M O R E I N F O R M AT I O N C O N TA C T:

Doug Buerger Managing director, Bendigo Mining NL Tel: (03) 5447 1834 Fax: (03) 5447 1835

MINERAL SANDS

The Port of Portland, Victoria’s only deep water port west of Port Phillip Bay, offers major benefits to the emerging mineral sands industry based on the vast resources of the Murray Basin. Fine port facilities, excellent onshore infrastructure and proximity to the bulk of the Murray Basin mineral sands deposits, provides Portland with a major opportunity to capitalise on its location.

The project is a major boost to Victoria’s efforts to attract downstream processing industries associated with mineral sands mining in the Murray Basin, with Portland as the major centre for overseas shipments.

RUTILE PLANT FOR PORTLAND T wo companies have announced plans to build a demonstration synthetic rutile processing plant near Portland on Victoria’s southwest coastline.

will be in a position to complete a bankable feasibility study for a full-scale facility in India, the Murray Basin, or elsewhere in the world.”

The move boosts Victoria’s drive to become the processing and distribution centre of the booming mineral sands industry in the Murray Basin.

At its annual meeting Austpac chairman, Alf Paton, told shareholders that the company was making substantial progress towards its objective of becoming a technology-based heavy minerals development company.

The companies, Austpac Resources NL and Ticor Ltd, said that engineering design and cost estimates for a 10,000 tonnes a year integrated synthetic rutile plant near Portland would be completed soon The companies added that they hoped to have planning permits and works approvals in place within six months.

“Our clear policy of proving and commercially applying our technologies is unaltered, as is our thrust in refining and further advancing the ERMS and EARS technologies them-

selves,” he said.

Mr Paton added that while the companies’ AusRutile project in India was well advanced with the objective of starting construction in 2002, the project had been put on hold until all approvals, including foreign investment, were completed. In the meantime, however, “with the increasing number of companies active in the Murray Basin, interest is growing rapidly in the ERMS and EARS technologies,” he added. “This has provided Austpac and Ticor with the potential for a second synthetic rutile project in addition to AusRutile.” Mr Paton said that as well as the AustpacTicor exploration program within exploration licence area 4521; Austpac had been carrying out test programs for a number of other companies with deposits in the Murray Basin.

The Portland project is based on earlier work undertaken for a similar plant the group was considering at Orissa in India. While the companies say they will continue to pursue the Orissa project, delays in obtaining ministerial approval for the plant have forced them to move to Victoria.

“In August 2001 Ticor and Austpac decided to assess the potential for synthetic rutile production in the Murray Basin,” he added. “Our study was positive and, as the AusRutile project has encountered delays, Austpac and Ticor have decided to locate the demonstration plant in Australia.

The companies want to demonstrate their ERMS and EARS processes as soon as possible so they can undertake a feasibility study for a full-scale synthetic rutile facility of at least 100,000 tonnes a year.

“We are currently revising the engineering design work completed for the 10,000 tpa AusRutile plant and are seeking quotes for all major equipment items.We are evaluating potential sites near Portland. This work will be completed by January 2002 and we expect to be in a position to proceed with the project during the first half of 2002.

In a statement to the Australian Stock Exchange, Austpac Resources managing director, Mike Turbott, said: “The initial synthetic rutile plant proposed for Portland will demonstrate the technical and economic viability of the ERMS and EARS processes.

“It will also allow us to test Murray Basin ilmenites with a view to building a larger-scale synthetic rutile plant in Australia.”

“Once the viability of the processes and market acceptance is achieved, Austpac and Ticor

10

The first Murray Basin rutile was exported from Portland last June with the shipment coming from Murray Basin Titanium’s mine at Wemen, near Robinvale in Northern Victoria. Although the shipment was transported to Portland by road, it demonstrated that a mineral sands supply chain through Portland would work. Portland has several natural and infrastructure advantages, which make it an attractive centre for new industries. The city’s deep water port offers the opportunity to export mineral sands products in vessels larger than those able to berth at ports like Melbourne, Adelaide, Geelong and Port Pirie.

In June, a second consortium involving Duke Energy International and GasNet Australia announced that it too would build a gas pipeline from Port Campbell to Adelaide, adopting a similar route, also through Portland’s Glenelg Shire, further boosting the region’s attractiveness to industrial investors.

Basin’s final feasibility study is also due for completion in the first quarter of this year. Determining the location of the mineral concentrator to produce final mineral products — ilmenite, rutile, zircon, leucoxene and tin — is near completion and should be announced soon, Dr Farrell said. The company has also announced its first marketing off-take agreement for mineral products from the Douglas project.

The area also received a major upgrade in electricity infrastructure as part of the Portland Aluminium Smelter development in the 1980’s. In addition, Portland sits on a vast ground water resource large enough to service a city twice the size of Geelong, and this is supplied at one third of the cost that most Victorian businesses pay.

PORTLAND HAS SEVERAL NATURAL AND INFRASTRUCTURE ADVANTAGES, WHICH MAKE IT AN ATTRACTIVE CENTRE FOR NEW INDUSTRIES.

Rail access and gas supply were two other key challenges to Portland’s bid to be centre of the Basin’s mineral sands processing industries.

While only one pipeline project is likely to proceed, it will easily supply the gas volumes required for processing mineral sands.

In 1994, as part of the National Rail initiative, the railway from Ararat to Portland was converted from the Victorian broad gauge to the standard gauge used to link Australia’s state capitals. However, the differing rail gauges in the western and northern regions of the state, remained a major barrier to potential development. This problem is now being overcome with the Victorian Government’s decision to fund a $96 million rail standardisation program as part of the 2001/02 state budget.

Another development aiding Portland’s prospects is that Basin Minerals is close to committing to the development of its Douglas deposit. The Douglas deposit is estimated to be the largest course-grained mineral sands deposit in the Murray Basin.

“Notwithstanding the current economic uncertainty, the project is well poised to take advantage of the predicted upward cycle of world economic activity from late 2002 – early 2003,” he added.

It lies 50 km northwest of Horsham, and is only about 150 kilometres from Portland, making the choice of an export port an easy decision. The Portland area is also well placed to attract the Douglas project’s minerals separation plant.

In the meantime, groups like the Glenelg Shire are working with the Victorian Government and the Rural City of Mildura to encourage other companies with projects in southern New South Wales to separate products in Mildura, then rail them south for export from Portland.

The solution to the gas supply problem has come through a different avenue. Two major private sector groups have announced plans to build gas pipelines through the Portland area. (See our story on page 2).

Basin Minerals has lodged its Environmental Effects Statement for public comment, which will remain open until February this year.

Last March, the South Australian Government entered into a facilitation agreement with Origin Energy and Australian National Power to construct a 45 petajoule gas pipeline between Port Campbell in Victoria and Adelaide. This pipeline is 10 times the capacity of the current gas pipeline into Portland.

Basin Minerals managing director, Dr Brad Farrell said: “It is expected that the EES should be approved at the end of first quarter 2002. “A mining plan and application for a mining lease over the stage one area will now be lodged with the Victorian Government (DNRE) for processing concurrently with the EES. Approval is expected at or about the same time as the EES.”

11

German group, Frank & Schulte GmbH, has agreed to buy up to 30,000 tonnes of premium zircon a year for five years destined for Chinese customers. While the marketing arrangements are being put in place project financing avenues are also being investigated. Dr Farrell said the Douglas project was on schedule to produce 300,000 tonnes of mineral sands product a year by late 2003.

The security of feedstock supply will be critical in attracting multi-million dollar, valueadding investments in the mineral sands industry to areas such as Portland. F O R M O R E I N F O R M AT I O N C O N TA C T:

Brad Farrell Managing director, Basin Minerals Tel: (08) 9486 1028

MINERAL SANDS

The Port of Portland, Victoria’s only deep water port west of Port Phillip Bay, offers major benefits to the emerging mineral sands industry based on the vast resources of the Murray Basin. Fine port facilities, excellent onshore infrastructure and proximity to the bulk of the Murray Basin mineral sands deposits, provides Portland with a major opportunity to capitalise on its location.

The project is a major boost to Victoria’s efforts to attract downstream processing industries associated with mineral sands mining in the Murray Basin, with Portland as the major centre for overseas shipments.

RUTILE PLANT FOR PORTLAND T wo companies have announced plans to build a demonstration synthetic rutile processing plant near Portland on Victoria’s southwest coastline.

will be in a position to complete a bankable feasibility study for a full-scale facility in India, the Murray Basin, or elsewhere in the world.”

The move boosts Victoria’s drive to become the processing and distribution centre of the booming mineral sands industry in the Murray Basin.

At its annual meeting Austpac chairman, Alf Paton, told shareholders that the company was making substantial progress towards its objective of becoming a technology-based heavy minerals development company.

The companies, Austpac Resources NL and Ticor Ltd, said that engineering design and cost estimates for a 10,000 tonnes a year integrated synthetic rutile plant near Portland would be completed soon The companies added that they hoped to have planning permits and works approvals in place within six months.

“Our clear policy of proving and commercially applying our technologies is unaltered, as is our thrust in refining and further advancing the ERMS and EARS technologies them-

selves,” he said.

Mr Paton added that while the companies’ AusRutile project in India was well advanced with the objective of starting construction in 2002, the project had been put on hold until all approvals, including foreign investment, were completed. In the meantime, however, “with the increasing number of companies active in the Murray Basin, interest is growing rapidly in the ERMS and EARS technologies,” he added. “This has provided Austpac and Ticor with the potential for a second synthetic rutile project in addition to AusRutile.” Mr Paton said that as well as the AustpacTicor exploration program within exploration licence area 4521; Austpac had been carrying out test programs for a number of other companies with deposits in the Murray Basin.

The Portland project is based on earlier work undertaken for a similar plant the group was considering at Orissa in India. While the companies say they will continue to pursue the Orissa project, delays in obtaining ministerial approval for the plant have forced them to move to Victoria.

“In August 2001 Ticor and Austpac decided to assess the potential for synthetic rutile production in the Murray Basin,” he added. “Our study was positive and, as the AusRutile project has encountered delays, Austpac and Ticor have decided to locate the demonstration plant in Australia.

The companies want to demonstrate their ERMS and EARS processes as soon as possible so they can undertake a feasibility study for a full-scale synthetic rutile facility of at least 100,000 tonnes a year.

“We are currently revising the engineering design work completed for the 10,000 tpa AusRutile plant and are seeking quotes for all major equipment items.We are evaluating potential sites near Portland. This work will be completed by January 2002 and we expect to be in a position to proceed with the project during the first half of 2002.

In a statement to the Australian Stock Exchange, Austpac Resources managing director, Mike Turbott, said: “The initial synthetic rutile plant proposed for Portland will demonstrate the technical and economic viability of the ERMS and EARS processes.

“It will also allow us to test Murray Basin ilmenites with a view to building a larger-scale synthetic rutile plant in Australia.”

“Once the viability of the processes and market acceptance is achieved, Austpac and Ticor

10

The first Murray Basin rutile was exported from Portland last June with the shipment coming from Murray Basin Titanium’s mine at Wemen, near Robinvale in Northern Victoria. Although the shipment was transported to Portland by road, it demonstrated that a mineral sands supply chain through Portland would work. Portland has several natural and infrastructure advantages, which make it an attractive centre for new industries. The city’s deep water port offers the opportunity to export mineral sands products in vessels larger than those able to berth at ports like Melbourne, Adelaide, Geelong and Port Pirie.

In June, a second consortium involving Duke Energy International and GasNet Australia announced that it too would build a gas pipeline from Port Campbell to Adelaide, adopting a similar route, also through Portland’s Glenelg Shire, further boosting the region’s attractiveness to industrial investors.

Basin’s final feasibility study is also due for completion in the first quarter of this year. Determining the location of the mineral concentrator to produce final mineral products — ilmenite, rutile, zircon, leucoxene and tin — is near completion and should be announced soon, Dr Farrell said. The company has also announced its first marketing off-take agreement for mineral products from the Douglas project.

The area also received a major upgrade in electricity infrastructure as part of the Portland Aluminium Smelter development in the 1980’s. In addition, Portland sits on a vast ground water resource large enough to service a city twice the size of Geelong, and this is supplied at one third of the cost that most Victorian businesses pay.

PORTLAND HAS SEVERAL NATURAL AND INFRASTRUCTURE ADVANTAGES, WHICH MAKE IT AN ATTRACTIVE CENTRE FOR NEW INDUSTRIES.

Rail access and gas supply were two other key challenges to Portland’s bid to be centre of the Basin’s mineral sands processing industries.

While only one pipeline project is likely to proceed, it will easily supply the gas volumes required for processing mineral sands.

In 1994, as part of the National Rail initiative, the railway from Ararat to Portland was converted from the Victorian broad gauge to the standard gauge used to link Australia’s state capitals. However, the differing rail gauges in the western and northern regions of the state, remained a major barrier to potential development. This problem is now being overcome with the Victorian Government’s decision to fund a $96 million rail standardisation program as part of the 2001/02 state budget.

Another development aiding Portland’s prospects is that Basin Minerals is close to committing to the development of its Douglas deposit. The Douglas deposit is estimated to be the largest course-grained mineral sands deposit in the Murray Basin.

“Notwithstanding the current economic uncertainty, the project is well poised to take advantage of the predicted upward cycle of world economic activity from late 2002 – early 2003,” he added.

It lies 50 km northwest of Horsham, and is only about 150 kilometres from Portland, making the choice of an export port an easy decision. The Portland area is also well placed to attract the Douglas project’s minerals separation plant.

In the meantime, groups like the Glenelg Shire are working with the Victorian Government and the Rural City of Mildura to encourage other companies with projects in southern New South Wales to separate products in Mildura, then rail them south for export from Portland.

The solution to the gas supply problem has come through a different avenue. Two major private sector groups have announced plans to build gas pipelines through the Portland area. (See our story on page 2).

Basin Minerals has lodged its Environmental Effects Statement for public comment, which will remain open until February this year.

Last March, the South Australian Government entered into a facilitation agreement with Origin Energy and Australian National Power to construct a 45 petajoule gas pipeline between Port Campbell in Victoria and Adelaide. This pipeline is 10 times the capacity of the current gas pipeline into Portland.

Basin Minerals managing director, Dr Brad Farrell said: “It is expected that the EES should be approved at the end of first quarter 2002. “A mining plan and application for a mining lease over the stage one area will now be lodged with the Victorian Government (DNRE) for processing concurrently with the EES. Approval is expected at or about the same time as the EES.”

11

German group, Frank & Schulte GmbH, has agreed to buy up to 30,000 tonnes of premium zircon a year for five years destined for Chinese customers. While the marketing arrangements are being put in place project financing avenues are also being investigated. Dr Farrell said the Douglas project was on schedule to produce 300,000 tonnes of mineral sands product a year by late 2003.

The security of feedstock supply will be critical in attracting multi-million dollar, valueadding investments in the mineral sands industry to areas such as Portland. F O R M O R E I N F O R M AT I O N C O N TA C T:

Brad Farrell Managing director, Basin Minerals Tel: (08) 9486 1028

REGULAR FEATURE

REGULAR FEATURE

News Briefs MELBOURNE TO HOST GOLD CONFERENCE Victoria’s re-emergence as a potentially major gold producing region, through major discoveries at Bendigo, Stawell and recently at Costerfield, have helped the state win another major industry conference. During April, Melbourne will host the Australian Gold Conference which is presented by the Australian Gold Council and the Chamber of Minerals and Energy. It will be the first time in the event’s 15-year history that the conference has been staged in Melbourne. The conference will run from Sunday, April 14 to Tuesday, April 16. International speakers and a draft program have been posted to the conference website at www.conference.australiangold.org.au The conference is the gold industry's premier annual event and is expected to be attended by 400 national and international delegates. The theme is ‘Seeking A New Golden Age: Consolidation, Consumption and Confidence’. Speakers will include the newly appointed executive director of the Australian Gold Council, Tamara Stephens and Barrick Gold Corporation president and chief executive officer, Randall Oliphant. Nigel Desebrock, who founded the Grendon International Research group in 1989, will also speak. Mr Desebrock established the

News Briefs

Grendon group after a 20-year association with the gold industry, including terms with the International Gold Corporation (the marketing arm of the Chamber of Mines of South Africa) in London and Johannesburg and with the Gold Corporation where he became a director of the Perth Mint and Managing Director of GoldCorp Australia. The conference will be opened by Victorian Premier, Steve Bracks.

WESTERN PROMOTION Two delegates from the Geological Survey of Victoria, Marvena van Kann and Jonathan Thom (pictured), represented the state at the New Generation Gold Conference, held in Perth in late November. Following the success of the Mining 2001 conference in Melbourne which showcased Victoria’s credentials as a place to invest, the Perth conference focused on case histories of recent successes in gold exploration, both in Australia and overseas. The GSV booth exhibited the latest, highquality geological maps and geophysical images and promoted the freely available GIS data. The advantages of exploring for gold in Victoria were stressed and information on prospective areas provided. Victoria now leads the way among Australian states by providing, at low-cost, high-quality geological and geophysical maps and other data Victoria’s Energy and Resources Minister, Candy Broad, and EABS chairman Bryan Griffith at the conference exhibition.

covering the vast majority of the state. This has helped attract growing exploration interest.

Julie Dill, said that the expansion was timely.

VICTORIA IS ‘THE PLACE TO BE’ FOR HYDROCARBON EXPLORERS

“This additional generation unit doubles the size of the Bairnsdale power station to 86 MW and will provide additional electricity supply to the state in time for Victoria’s peak summer period,” she said.“The expansion of this facility represents another sizeable investment in the East Gippsland region and supports Duke’s strategy of building market-driven integrated energy projects.”

The relevance of Victoria’s hydrocarbon provinces was highlighted at the recent Eastern Australasian Basins Symposium (EABS), held during November in Melbourne.

The Bairnsdale power station, which was officially launched by Victorian Premier, Steve Bracks, in June last year, was Victoria’s first new merchant power project in a decade.

NRE’s Petroleum Development Branch was a major sponsor of the three-day event and participated in the trade exhibition and presented three papers in the technical program.

Victoria’s Minister for State and Regional Development, John Brumby, said the latest unit would improve the security of electricity supply in Victoria. “Duke Energy has already invested $2 billion in Australia – it is very pleasing to see some of that investment here in Victoria as part of the DEI’s vision for the Australian energy market,” he said.

NRE’s policy of providing free digital data to explorers was of particular interest and many delegates appeared keen to pursue exploration opportunities in Victoria.

The theme ‘A Refocussed Energy Perspective’, attracted 327 delegates from all Australian states, as well as New Guinea, Malaysia, Indonesia, Singapore, the Philippines, Canada, New Zealand, England, Scotland, and the USA. The world-class technical program focussed on the geoscience behind hydrocarbon exploration in the eastern Australasian region. Several keynote speakers gave a global perspective on oil and gas marketing and addressed the new emerging technologies as well as the sustainability of the petroleum industry. The sedimentary basins in south-eastern Australia, in particular those in Victoria, are commonly perceived as either being nonprospective or as mature in terms of remaining hydrocarbon potential. EABS 2001 certainly put this perception to rest and delineated the many opportunities for successful exploration and marketing of an important energy resource.

DUKE ENERGY’S VICTORIAN POWER BOOSTER Duke Energy International has installed a second 43-Megawatt power generation unit at its Bairnsdale power station in East Gippsland to double capacity and help ease the state’s potential power shortage. The expansion was completed a month ahead of schedule and will provide extra peaking capacity for the Victorian power market. Duke Energy International managing director,

Fuelled by natural gas from DEI’s Eastern gas pipeline, the plant utilises state-of-the-art technology to reduce emission levels.

MINERAL SANDS DEVELOPMENTS MOVE ON Production from the Wemen mineral sands project in the Murray Basin near Ouyen, is set to resume at design capacity levels after a twomonth project eliminated bottlenecks in the processing plant. The Wemen project produced 3020 tonnes of rutile and 565 tonnes of zircon in the December quarter. The work to remove the process bottlenecks at the Mildura separation plant should allow the project to resume production at the annual design rate of 30,000 tonnes of rutile and 10,000 tonnes of zircon. In its quarterly report, Sons of Gwalia Ltd, a half owner of the Wemen project, reported that it was also working on definition drilling at its Prungle mineral sands project, 80 km north of Mildura in NSW. The Prungle project contains an inferred resource of 96.4 million tonnes of mineral sands at a grade of 4.8 per cent heavy mineral containing 4.6 million tonnes of heavy mineral. The infill-drilling program is aimed at providing sufficient information to allow preliminary economic studies to be started on developing the project.

The company also said that planning and preparation had been completed for an infilldrilling program on the newly discovered strandlines located 35 km south west of the Wemen mine. Drilling of the strandlines, named Mercury, Galileo and Titan, is expected to be underway by February this year.

GUIDELINES AGREED ON DRILL SAMPLES The Victorian Minerals and Energy Council and Minerals & Petroleum Victoria have agreed on guidelines for representative drill samples to be submitted to MPV when exploration tenements expire. Compulsory submission of representative drill core and cuttings samples after a tenement has expired will help build the public data base on Victorian geology.

Drill samples should be delivered to the MPV Core Store, South Road, Werribee by arrangement with Avi Olshina (Tel: 03 9412 5094; Fax: 03 9412 5155; email. [email protected]). Details of the exploration reporting guidelines are available on the Department’s website at www.nre.vic.gov.au/minpet.

COAL TENDERS CLOSE Several tenders have been received by the Victorian Government, as part of the tender process to develop the Latrobe Valley coal fields. The tender assessment process is underway and a decision is expected by mid-year.

The samples will benefit the mining and exploration industry by providing examples of mineralisation, host rocks and associated alteration for future study.

This tender is the first occasion, since the 1920’s, that a broad-scale offering of the coal resources in the Latrobe Valley has been made.

Victoria already boasts among the most comprehensive, statewide, geological data base of any Australian state, boosted largely by the Victorian Initiative for Minerals and Petroleum which has provided airborne radiometric and magnetic surveys over almost the entire state.

In giving access to such a large coal resource, the Victoria Government is seeking to encourage the application of new and innovative technologies and processes to produce competitive electricity and other products on a world scale.

13 12

The Geological Survey of Victoria’s Jonathon Thom and Marvena van Kamm represented Victoria at the New Generation Gold Conference in Perth in November to build on the interest generated at the earlier Mining 2001 conference.

REGULAR FEATURE

REGULAR FEATURE

News Briefs MELBOURNE TO HOST GOLD CONFERENCE Victoria’s re-emergence as a potentially major gold producing region, through major discoveries at Bendigo, Stawell and recently at Costerfield, have helped the state win another major industry conference. During April, Melbourne will host the Australian Gold Conference which is presented by the Australian Gold Council and the Chamber of Minerals and Energy. It will be the first time in the event’s 15-year history that the conference has been staged in Melbourne. The conference will run from Sunday, April 14 to Tuesday, April 16. International speakers and a draft program have been posted to the conference website at www.conference.australiangold.org.au The conference is the gold industry's premier annual event and is expected to be attended by 400 national and international delegates. The theme is ‘Seeking A New Golden Age: Consolidation, Consumption and Confidence’. Speakers will include the newly appointed executive director of the Australian Gold Council, Tamara Stephens and Barrick Gold Corporation president and chief executive officer, Randall Oliphant. Nigel Desebrock, who founded the Grendon International Research group in 1989, will also speak. Mr Desebrock established the

News Briefs

Grendon group after a 20-year association with the gold industry, including terms with the International Gold Corporation (the marketing arm of the Chamber of Mines of South Africa) in London and Johannesburg and with the Gold Corporation where he became a director of the Perth Mint and Managing Director of GoldCorp Australia. The conference will be opened by Victorian Premier, Steve Bracks.

WESTERN PROMOTION Two delegates from the Geological Survey of Victoria, Marvena van Kann and Jonathan Thom (pictured), represented the state at the New Generation Gold Conference, held in Perth in late November. Following the success of the Mining 2001 conference in Melbourne which showcased Victoria’s credentials as a place to invest, the Perth conference focused on case histories of recent successes in gold exploration, both in Australia and overseas. The GSV booth exhibited the latest, highquality geological maps and geophysical images and promoted the freely available GIS data. The advantages of exploring for gold in Victoria were stressed and information on prospective areas provided. Victoria now leads the way among Australian states by providing, at low-cost, high-quality geological and geophysical maps and other data Victoria’s Energy and Resources Minister, Candy Broad, and EABS chairman Bryan Griffith at the conference exhibition.

covering the vast majority of the state. This has helped attract growing exploration interest.

Julie Dill, said that the expansion was timely.

VICTORIA IS ‘THE PLACE TO BE’ FOR HYDROCARBON EXPLORERS

“This additional generation unit doubles the size of the Bairnsdale power station to 86 MW and will provide additional electricity supply to the state in time for Victoria’s peak summer period,” she said.“The expansion of this facility represents another sizeable investment in the East Gippsland region and supports Duke’s strategy of building market-driven integrated energy projects.”

The relevance of Victoria’s hydrocarbon provinces was highlighted at the recent Eastern Australasian Basins Symposium (EABS), held during November in Melbourne.

The Bairnsdale power station, which was officially launched by Victorian Premier, Steve Bracks, in June last year, was Victoria’s first new merchant power project in a decade.

NRE’s Petroleum Development Branch was a major sponsor of the three-day event and participated in the trade exhibition and presented three papers in the technical program.

Victoria’s Minister for State and Regional Development, John Brumby, said the latest unit would improve the security of electricity supply in Victoria. “Duke Energy has already invested $2 billion in Australia – it is very pleasing to see some of that investment here in Victoria as part of the DEI’s vision for the Australian energy market,” he said.

NRE’s policy of providing free digital data to explorers was of particular interest and many delegates appeared keen to pursue exploration opportunities in Victoria.

The theme ‘A Refocussed Energy Perspective’, attracted 327 delegates from all Australian states, as well as New Guinea, Malaysia, Indonesia, Singapore, the Philippines, Canada, New Zealand, England, Scotland, and the USA. The world-class technical program focussed on the geoscience behind hydrocarbon exploration in the eastern Australasian region. Several keynote speakers gave a global perspective on oil and gas marketing and addressed the new emerging technologies as well as the sustainability of the petroleum industry. The sedimentary basins in south-eastern Australia, in particular those in Victoria, are commonly perceived as either being nonprospective or as mature in terms of remaining hydrocarbon potential. EABS 2001 certainly put this perception to rest and delineated the many opportunities for successful exploration and marketing of an important energy resource.

DUKE ENERGY’S VICTORIAN POWER BOOSTER Duke Energy International has installed a second 43-Megawatt power generation unit at its Bairnsdale power station in East Gippsland to double capacity and help ease the state’s potential power shortage. The expansion was completed a month ahead of schedule and will provide extra peaking capacity for the Victorian power market. Duke Energy International managing director,

Fuelled by natural gas from DEI’s Eastern gas pipeline, the plant utilises state-of-the-art technology to reduce emission levels.

MINERAL SANDS DEVELOPMENTS MOVE ON Production from the Wemen mineral sands project in the Murray Basin near Ouyen, is set to resume at design capacity levels after a twomonth project eliminated bottlenecks in the processing plant. The Wemen project produced 3020 tonnes of rutile and 565 tonnes of zircon in the December quarter. The work to remove the process bottlenecks at the Mildura separation plant should allow the project to resume production at the annual design rate of 30,000 tonnes of rutile and 10,000 tonnes of zircon. In its quarterly report, Sons of Gwalia Ltd, a half owner of the Wemen project, reported that it was also working on definition drilling at its Prungle mineral sands project, 80 km north of Mildura in NSW. The Prungle project contains an inferred resource of 96.4 million tonnes of mineral sands at a grade of 4.8 per cent heavy mineral containing 4.6 million tonnes of heavy mineral. The infill-drilling program is aimed at providing sufficient information to allow preliminary economic studies to be started on developing the project.

The company also said that planning and preparation had been completed for an infilldrilling program on the newly discovered strandlines located 35 km south west of the Wemen mine. Drilling of the strandlines, named Mercury, Galileo and Titan, is expected to be underway by February this year.

GUIDELINES AGREED ON DRILL SAMPLES The Victorian Minerals and Energy Council and Minerals & Petroleum Victoria have agreed on guidelines for representative drill samples to be submitted to MPV when exploration tenements expire. Compulsory submission of representative drill core and cuttings samples after a tenement has expired will help build the public data base on Victorian geology.

Drill samples should be delivered to the MPV Core Store, South Road, Werribee by arrangement with Avi Olshina (Tel: 03 9412 5094; Fax: 03 9412 5155; email. [email protected]). Details of the exploration reporting guidelines are available on the Department’s website at www.nre.vic.gov.au/minpet.

COAL TENDERS CLOSE Several tenders have been received by the Victorian Government, as part of the tender process to develop the Latrobe Valley coal fields. The tender assessment process is underway and a decision is expected by mid-year.

The samples will benefit the mining and exploration industry by providing examples of mineralisation, host rocks and associated alteration for future study.

This tender is the first occasion, since the 1920’s, that a broad-scale offering of the coal resources in the Latrobe Valley has been made.

Victoria already boasts among the most comprehensive, statewide, geological data base of any Australian state, boosted largely by the Victorian Initiative for Minerals and Petroleum which has provided airborne radiometric and magnetic surveys over almost the entire state.

In giving access to such a large coal resource, the Victoria Government is seeking to encourage the application of new and innovative technologies and processes to produce competitive electricity and other products on a world scale.

13 12

The Geological Survey of Victoria’s Jonathon Thom and Marvena van Kamm represented Victoria at the New Generation Gold Conference in Perth in November to build on the interest generated at the earlier Mining 2001 conference.

REGULAR FEATURE

REGULAR FEATURE

Victoria’s mineral, oil and gas resources

14

15

REGULAR FEATURE

REGULAR FEATURE

Victoria’s mineral, oil and gas resources

14

15

LICENCE REVIEW

ASX LISTING

Mineral Licences

EXPLORATION LICENCE APPLICATIONS PRIMARY OWNER NAME MOUNT ISA MINES LTD QUANTUM RESOURCES LTD WEDDERBURN MINING PTY LTD BASIN MINERALS HOLDINGS NL RANGE RIVER GOLD NL DUNOLLY GOLD DEVELOPMENTS PTY LTD WEDDERBURN MINING PTY LTD DR PAUL R MESSENGER AUSTPAC RESOURCES NL GOLDEN SIGNATURE NL GOLDEN SIGNATURE NL MR PETER S FORWOOD ILUKA RESOURCES LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD MR RONALD J YOUL YARDARINO LTD WEDDERBURN MINING PTY LTD MR DUNCAN R MCLEAN RANGE RIVER GOLD NL MOUNT ISA MINES LTD WEDDERBURN MINING PTY LTD

EVENT DATE 01/10/2001 04/10/2001 10/10/2001 25/10/2001 31/10/2001 31/10/2001 02/11/2001 07/11/2001 14/11/2001 19/11/2001 19/11/2001 21/11/2001 26/11/2001 04/12/2001 04/12/2001 04/12/2001 04/12/2001 04/12/2001 06/12/2001 17/12/2001 17/12/2001 19/12/2001 28/12/2001

STATUS APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION

AREA 263.0 GR 188.0 GR 57.0 GR 1.0 GR 67.0 GR 185.0 GR 95.0 GR 79.0 GR 112.0 GR 1143.0 GR 778.0 GR 43.0 GR 1655.0 GR 51.0 GR 13.0 GR 292.0 GR 8.0 GR 400.0 GR 116.0 GR 53.0 GR 102.0 GR 141.0 GR 17.0 GR

100,000 MAP MURRINDAL BENDIGO DUNOLLY BALMORAL FOSTER DUNOLLY WEDDERBURN DOOKIE HORSHAM WARRAGUL FOSTER ARARAT COHUNA ST ARNAUD DUNOLLY ST ARNAUD ST ARNAUD KANIVA WEDDERBURN ALEXANDRA ST ARNAUD WILLAURA WEDDERBURN

EXPLORATION LICENCES GRANTED TITLE

PRIMARY OWNER NAME

TYPE

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

EL4592 EL4596 EL4597 EL4600 EL4601 EL4602 EL4607 EL4609

BASIN MINERALS HOLDINGS NL PROBO MINING PTY LTD PROBO MINING PTY LTD ILUKA RESOURCES LTD ILUKA RESOURCES LTD PROVIDENCE GOLD AND MINERALS PTY LTD P S & G F FORWOOD PTY LTD SINCLAIR EXPLORATION PTY LTD

GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE

30/10/2001 30/10/200 30/10/2001 30/10/2001 30/10/2001 30/10/2001 23/11/2001 10/12/2001

30/10/2001 29/10/2006 29/10/2006 29/10/2006 29/10/2006 29/10/2006 22/11/2006 09/12/2006

CANC/AMAL CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT

EDENHOPE BIRCHIP KERANG GOROKE COLERAINE KERANG BALMORAL CRESWICK

TITLE

PRIMARY OWNER NAME

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

EL3848 EL4069 EL4070 EL4073 EL4074 EL4076 EL4362 EL4398 EL4492 EL4583

SAMMETA RESOURCES NL ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD SEDIMENTARY HOLDINGS LTD MOUNT ROMMEL MINING PTY LTD ILUKA MIDWEST LTD MOUNT ISA MINES LTD

17/01/2000 10/12/2001 10/12/2001 10/12/2001 10/12/2001 10/12/2001 02/10/2001 02/10/2001 10/12/2001 10/12/2001

17/01/2000 10/12/2001 10/12/2001 10/12/2001 10/12/2001 10/12/2001 02/10/2001 02/10/2001 10/12/2001 10/12/2001

EXPIRED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED

EDEN OUYEN NOWINGI UNDERBOOL DANYO DANYO WANGARATTA BENDIGO DANYO DOOKIE

TITLE

PRIMARY OWNER NAME

EVENT DATE

STATUS

AREA

100,000 MAP

MIN5354 MIN5355 MIN5356 MIN5357 TFA13

MR BARRY W SMITH UNIMIN AUSTRALIA LTD CRYSTAL WORLD AND PREHISTORIC JOURNEYS TARGET MINERAL EXPLORATION PTY LTD MR PHILLIP N DANIEL

16/10/2001 31/10/2001 11/12/2001 19/12/2001 22/10/2001

WITHDRAWN APPLICATION APPLICATION APPLICATION APPLICATION

4.8 HA 2.8 HA 5.0 HA 245.0 HA 1530.0 HA

DUNOLLY ALBURY FOSTER CRESWICK CASTLEMAINE

TITLE

PRIMARY OWNER NAME

TYPE

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

MIN5331 MIN5332

GYPSUM AUSTRALIA PTY LTD VICTORIAN GOLD MINES NL

GRANT OF LICENCE GRANT OF LICENCE

30/10/2001 30/10/2001

29/10/2006 29/10/2006

CURRENT CURRENT

HOPETOUN OMEO

TITLE

PRIMARY OWNER NAME

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

MIN5201 MIN4670

MR ERIC KARSLAKE MR DAVID BENTLEY

30/10/2001 30/10/2001

30/10/2001 30/10/2001

CANCELLED SURRENDERED

WEDDERBURN CRESWICK

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED

MINING LICENCE APPLICATIONS

MINING LICENCES GRANTED

MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED

ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED

16

GasNet chief executive officer, Christine O'Reilly, is leading the Victorian gas pipeline utility company through its successful early stages as an ASX- listed company.

Based on the application price of $2 per unit, GasNet has forecast yields of 11 percent in 2001 and 2002.

two sites in New South Wales as well as other facilities including metering, odourant injection, monitoring, control and communication systems.

G

October-December 2001

TITLE EL4610 EL4611 EL4612 EL4613 EL4614 EL4615 EL4616 EL4617 EL4618 EL4619 EL4620 EL4621 EL4622 EL4623 EL4624 EL4625 EL4626 EL4627 EL4628 EL4629 EL4630 EL4631 EL4632

asNet, the owner and operator of Victoria’s high pressure gas pipeline network, has successfully listed on the Australian Stock Exchange after raising $A260 million through its initial public offering of units.

More than 14,500 applications for units were received from the official prospectus and the issue closed heavily oversubscribed.

The company is responsible for the efficient commercial management of its physical transmission assets.

GasNet chief executive officer, Christine O’Reilly, said, “We are absolutely delighted with the very strong support shown by both retail and institutional investors.

GasNet must maintain the pipelines and associated assets in accordance with defined engineering standards, identify supply opportunities and build new pipelines in Victoria and elsewhere, based on commercial criteria.

“We look forward to beginning this exciting new phase for the business as a listed trust and to delivering value to our new unit holders.” The GasNet Australia Trust, through its wholly-owned subsidiary company GasNet Australia (Operations) Pty Ltd, owns and maintains a pipeline network of 1930 kilometres with five injection points – Longford (from which 97 per cent of the State’s gas has been supplied), Culcairn (in NSW), Dandenong LNG storage, Iona Underground Storage and North Paaratte. The network traverses much of the state and

has over 100 offtake points to most of Victoria’s cities and regional centres. Annual natural gas throughput is typically more than 200 petajoules. As well as its pipeline network, GNA Operations also owns and operates a liquefied natural gas storage (LNG) and vaporisation facility in Dandenong. It owns compressor stations at Gooding, Brooklyn, Wollert, Springhurst, Iona and on

It is also responsible for establishing reference tariffs (subject to regulatory approval) and other contractual arrangements for its services. Ms O’Reilly said the Trust was a low-risk, high-yield investment offering investors a stable, predictable revenue stream from assets which were in excellent condition. “There has been a flight to quality in capital markets with investors looking for safe and reliable investment opportunities,” she said.

GASNET FLOAT FIRES UP INVESTORS

LICENCE REVIEW

ASX LISTING

Mineral Licences

EXPLORATION LICENCE APPLICATIONS PRIMARY OWNER NAME MOUNT ISA MINES LTD QUANTUM RESOURCES LTD WEDDERBURN MINING PTY LTD BASIN MINERALS HOLDINGS NL RANGE RIVER GOLD NL DUNOLLY GOLD DEVELOPMENTS PTY LTD WEDDERBURN MINING PTY LTD DR PAUL R MESSENGER AUSTPAC RESOURCES NL GOLDEN SIGNATURE NL GOLDEN SIGNATURE NL MR PETER S FORWOOD ILUKA RESOURCES LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD DUNOLLY GOLD DEVELOPMENTS PTY LTD MR RONALD J YOUL YARDARINO LTD WEDDERBURN MINING PTY LTD MR DUNCAN R MCLEAN RANGE RIVER GOLD NL MOUNT ISA MINES LTD WEDDERBURN MINING PTY LTD

EVENT DATE 01/10/2001 04/10/2001 10/10/2001 25/10/2001 31/10/2001 31/10/2001 02/11/2001 07/11/2001 14/11/2001 19/11/2001 19/11/2001 21/11/2001 26/11/2001 04/12/2001 04/12/2001 04/12/2001 04/12/2001 04/12/2001 06/12/2001 17/12/2001 17/12/2001 19/12/2001 28/12/2001

STATUS APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION APPLICATION

AREA 263.0 GR 188.0 GR 57.0 GR 1.0 GR 67.0 GR 185.0 GR 95.0 GR 79.0 GR 112.0 GR 1143.0 GR 778.0 GR 43.0 GR 1655.0 GR 51.0 GR 13.0 GR 292.0 GR 8.0 GR 400.0 GR 116.0 GR 53.0 GR 102.0 GR 141.0 GR 17.0 GR

100,000 MAP MURRINDAL BENDIGO DUNOLLY BALMORAL FOSTER DUNOLLY WEDDERBURN DOOKIE HORSHAM WARRAGUL FOSTER ARARAT COHUNA ST ARNAUD DUNOLLY ST ARNAUD ST ARNAUD KANIVA WEDDERBURN ALEXANDRA ST ARNAUD WILLAURA WEDDERBURN

EXPLORATION LICENCES GRANTED TITLE

PRIMARY OWNER NAME

TYPE

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

EL4592 EL4596 EL4597 EL4600 EL4601 EL4602 EL4607 EL4609

BASIN MINERALS HOLDINGS NL PROBO MINING PTY LTD PROBO MINING PTY LTD ILUKA RESOURCES LTD ILUKA RESOURCES LTD PROVIDENCE GOLD AND MINERALS PTY LTD P S & G F FORWOOD PTY LTD SINCLAIR EXPLORATION PTY LTD

GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE GRANT OF LICENCE

30/10/2001 30/10/200 30/10/2001 30/10/2001 30/10/2001 30/10/2001 23/11/2001 10/12/2001

30/10/2001 29/10/2006 29/10/2006 29/10/2006 29/10/2006 29/10/2006 22/11/2006 09/12/2006

CANC/AMAL CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT CURRENT

EDENHOPE BIRCHIP KERANG GOROKE COLERAINE KERANG BALMORAL CRESWICK

TITLE

PRIMARY OWNER NAME

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

EL3848 EL4069 EL4070 EL4073 EL4074 EL4076 EL4362 EL4398 EL4492 EL4583

SAMMETA RESOURCES NL ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD ILUKA MIDWEST LTD SEDIMENTARY HOLDINGS LTD MOUNT ROMMEL MINING PTY LTD ILUKA MIDWEST LTD MOUNT ISA MINES LTD

17/01/2000 10/12/2001 10/12/2001 10/12/2001 10/12/2001 10/12/2001 02/10/2001 02/10/2001 10/12/2001 10/12/2001

17/01/2000 10/12/2001 10/12/2001 10/12/2001 10/12/2001 10/12/2001 02/10/2001 02/10/2001 10/12/2001 10/12/2001

EXPIRED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED SURRENDERED

EDEN OUYEN NOWINGI UNDERBOOL DANYO DANYO WANGARATTA BENDIGO DANYO DOOKIE

TITLE

PRIMARY OWNER NAME

EVENT DATE

STATUS

AREA

100,000 MAP

MIN5354 MIN5355 MIN5356 MIN5357 TFA13

MR BARRY W SMITH UNIMIN AUSTRALIA LTD CRYSTAL WORLD AND PREHISTORIC JOURNEYS TARGET MINERAL EXPLORATION PTY LTD MR PHILLIP N DANIEL

16/10/2001 31/10/2001 11/12/2001 19/12/2001 22/10/2001

WITHDRAWN APPLICATION APPLICATION APPLICATION APPLICATION

4.8 HA 2.8 HA 5.0 HA 245.0 HA 1530.0 HA

DUNOLLY ALBURY FOSTER CRESWICK CASTLEMAINE

TITLE

PRIMARY OWNER NAME

TYPE

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

MIN5331 MIN5332

GYPSUM AUSTRALIA PTY LTD VICTORIAN GOLD MINES NL

GRANT OF LICENCE GRANT OF LICENCE

30/10/2001 30/10/2001

29/10/2006 29/10/2006

CURRENT CURRENT

HOPETOUN OMEO

TITLE

PRIMARY OWNER NAME

EVENT DATE

EXPIRY DATE

STATUS

100,000 MAP

MIN5201 MIN4670

MR ERIC KARSLAKE MR DAVID BENTLEY

30/10/2001 30/10/2001

30/10/2001 30/10/2001

CANCELLED SURRENDERED

WEDDERBURN CRESWICK

EXPLORATION LICENCES SURRENDERED, CANCELLED OR EXPIRED

MINING LICENCE APPLICATIONS

MINING LICENCES GRANTED

MINING LICENCES SURRENDERED, CANCELLED OR EXPIRED

ABBREVIATIONS: SURR - SURRENDERED, CANC - CANCELLATION CAN/AM - CANCELLED/AMALGAMATED

16

GasNet chief executive officer, Christine O'Reilly, is leading the Victorian gas pipeline utility company through its successful early stages as an ASX- listed company.

Based on the application price of $2 per unit, GasNet has forecast yields of 11 percent in 2001 and 2002.

two sites in New South Wales as well as other facilities including metering, odourant injection, monitoring, control and communication systems.

G

October-December 2001

TITLE EL4610 EL4611 EL4612 EL4613 EL4614 EL4615 EL4616 EL4617 EL4618 EL4619 EL4620 EL4621 EL4622 EL4623 EL4624 EL4625 EL4626 EL4627 EL4628 EL4629 EL4630 EL4631 EL4632

asNet, the owner and operator of Victoria’s high pressure gas pipeline network, has successfully listed on the Australian Stock Exchange after raising $A260 million through its initial public offering of units.

More than 14,500 applications for units were received from the official prospectus and the issue closed heavily oversubscribed.

The company is responsible for the efficient commercial management of its physical transmission assets.

GasNet chief executive officer, Christine O’Reilly, said, “We are absolutely delighted with the very strong support shown by both retail and institutional investors.

GasNet must maintain the pipelines and associated assets in accordance with defined engineering standards, identify supply opportunities and build new pipelines in Victoria and elsewhere, based on commercial criteria.

“We look forward to beginning this exciting new phase for the business as a listed trust and to delivering value to our new unit holders.” The GasNet Australia Trust, through its wholly-owned subsidiary company GasNet Australia (Operations) Pty Ltd, owns and maintains a pipeline network of 1930 kilometres with five injection points – Longford (from which 97 per cent of the State’s gas has been supplied), Culcairn (in NSW), Dandenong LNG storage, Iona Underground Storage and North Paaratte. The network traverses much of the state and

has over 100 offtake points to most of Victoria’s cities and regional centres. Annual natural gas throughput is typically more than 200 petajoules. As well as its pipeline network, GNA Operations also owns and operates a liquefied natural gas storage (LNG) and vaporisation facility in Dandenong. It owns compressor stations at Gooding, Brooklyn, Wollert, Springhurst, Iona and on

It is also responsible for establishing reference tariffs (subject to regulatory approval) and other contractual arrangements for its services. Ms O’Reilly said the Trust was a low-risk, high-yield investment offering investors a stable, predictable revenue stream from assets which were in excellent condition. “There has been a flight to quality in capital markets with investors looking for safe and reliable investment opportunities,” she said.

GASNET FLOAT FIRES UP INVESTORS

ASX LISTING

GOLD MOVES

market to focus on its North American operations. GasNet has forecast revenues of $99.7 million for the 2002 financial year and earnings before income tax, depreciation and amortisation (EBITDA) of $75.6 million with a yield forecast of 11 percent. GasNet supplies 1.4 million residential consumers and approximately 43,000 industrial and commercial users throughout Victoria. The company’s transmission assets consist of two separate networks - the Principal system, which is supplied primarily from the offshore Bass Strait gas fields and the smaller Western system, which is supplied from the onshore Otway Basin gas fields. Over the past five years, the company has completed a number of strategic construction projects including the Interconnect Pipeline between Victoria and New South Wales and the Southwest Pipeline connecting the Principal and Western systems.

“GasNet offers exactly that combination.” The outlook for the Australian natural gas industry is currently strong with substantial growth forecast over the next decade. New gas discoveries in the Victorian Otway Basin, both on and offshore, have stimulated the Victorian industry. “GasNet is well-placed geographically to take advantage of increased use of natural gas and new gas fields in Victoria,” Ms O’Reilly said. “As the dominant provider of gas transmission in Victoria, GasNet stands to benefit from Australia’s deregulated energy market as

demand for environmentally acceptable natural gas grows. “GasNet is a pure infrastructure business with well-engineered and well-managed assets designed for long life and low maintenance costs,” she added. GasNet evolved from GPU Inc, a major USbased international utility, which acquired the assets of GasNet from the Victorian Government in June 1999 as part of the State’s gas industry privatisation process. As a result of GPU’s subsequent merger with First Energy, GPU is exiting the Australian

the WORLD is yours

These pipelines were built in response to the gas supply interruptions following the Longford gas plant explosion and to take advantage of the expected growth in gas consumption. Natural gas usage has experienced strong growth and is expected to account for approximately 24 per cent of total primary energy usage in Australia by 2019. F O R M O R E I N F O R M AT I O N C O N TA C T:

Christine O’Reilly, Chief Executive Officer - GasNet Tel: (03) 9797 5184 or 1300 855 553 or visit www.gasnet.com.au, email: [email protected].

You’ll find a world of information on Victorian mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference Centre. Although focussed to serve members of the mining industry, the MPRC is open to the public from 8.30am to 5pm, Monday to Friday. It is conveniently located next to the Minerals Business Centre.

special collections include: • Expired tenement reports on microfiche (and hard copy) • 5000+ Geological Survey of Victoria Unpublished Reports • Departmental publications (old Mines Department records and reports dating from 1851) • Victorian published geological maps, both current and historical • Underground mine plans on microfiche • 1600+ B&W historical Victorian mining photographs The MPRC is now located with the Minerals Business Centre on the 8th floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]

18

Gold Council moves to Melbourne he Australian Gold Council, established three years ago to represent the gold industry and improve marketing initiatives, has appointed a new executive director and moved its headquarters to Melbourne.

T

The new executive director, Tamara Stephens, replaces Greg Barns, the Council’s first full time executive director. Mr Barns told Discovery that the Australian Gold Council was as at home in Melbourne as any other major east coast city but had to be close to the nation’s major population base, its financial centres and close to the major political debate. Since its inception three years ago the Australian Gold Council has quickly become a leading player in the political issues which affect the industry. Mr Barns said, “We are seeing a bit of a renaissance in gold mining in Victoria and we are holding our Australian Gold Conference there this year, reflecting that new interest in the industry.” “After two years in the role as executive director I felt it was time to hand over to someone new. Tamara brings the right set of skills to the Council in terms of marketing gold,” Mr Barns said.

Tamara Stephens has a substantial history in the mining industry coming from Perth where she has worked for a number of industry associations including several years with the Association of Mining and Exploration Companies and with the Western Australian Wine Association.

SINCE ITS INCEPTION THREE YEARS AGO THE AUSTRALIAN GOLD COUNCIL HAS QUICKLY BECOME A LEADING PLAYER IN THE POLITICAL ISSUES WHICH AFFECT THE INDUSTRY “I am thrilled to have been offered this opportunity to represent the Australian gold industry,” Ms Stephens told Discovery. “I have an abiding interest in the industry and the minerals sector in general. “Moving the Australian Gold Council to Victoria in the year of the 150th anniversary of the discovery of gold in the state looks like an auspicious time for the council and the industry,” Ms Stephens said. “I have a very strong belief in gold as an industry and I am very happy to be in a position to promote the product.” The Australian Gold Council was formed in 1998 to represent the interests of the Australian gold industry. With a membership comprised of producers, explorers and associates the council aims to promote and improve the profile of the Australian gold industry within Australia and overseas and to ensure that the investment climate for the industry maximises growth and capacity. The council also seeks to highlight the gold industry's social, economic and regional importance to Australia and seek to improve capital access and enhance the investment climate for the industry. With such a mission, the actual location of the Council’s headquarters is not of great importance, Mr Barns said. But by being located in Melbourne the gold industry in Victoria will gain added impetus. The Australian Gold Council is primarily interested to ensure that all Australians 19

Greg Barnes has left the Australian Gold Council after two years to be replaced by Tamara Stephens.

appreciate the economic and social significance of the Australian gold industry in the 21st century. It wants to ensure that the right regulatory and financial climate exists for investment in the gold industry and to encourage greater investment in gold companies listed on the Australian Stock Exchange and reduce barriers to investment in the gold exploration sector. Importantly the Council has acquired the role of promoting value-adding opportunities for gold producers through linkages with the jewellery sector and industrial users of gold. To do this it encourages increased research and development into industrial uses of gold, to promote the Australian gold refinery industry and to work with major educational and information outlets such as museums and technology sectors so that the story of gold, both past present and future, is readily accessible to the community. F O R M O R E I N F O R M AT I O N C O N TA C T:

Tamara Stephens Executive Director, Australian Gold Council Email: [email protected] Tel: (02) 9923 2446 Fax: (02) 9923 1130

ASX LISTING

GOLD MOVES

market to focus on its North American operations. GasNet has forecast revenues of $99.7 million for the 2002 financial year and earnings before income tax, depreciation and amortisation (EBITDA) of $75.6 million with a yield forecast of 11 percent. GasNet supplies 1.4 million residential consumers and approximately 43,000 industrial and commercial users throughout Victoria. The company’s transmission assets consist of two separate networks - the Principal system, which is supplied primarily from the offshore Bass Strait gas fields and the smaller Western system, which is supplied from the onshore Otway Basin gas fields. Over the past five years, the company has completed a number of strategic construction projects including the Interconnect Pipeline between Victoria and New South Wales and the Southwest Pipeline connecting the Principal and Western systems.

“GasNet offers exactly that combination.” The outlook for the Australian natural gas industry is currently strong with substantial growth forecast over the next decade. New gas discoveries in the Victorian Otway Basin, both on and offshore, have stimulated the Victorian industry. “GasNet is well-placed geographically to take advantage of increased use of natural gas and new gas fields in Victoria,” Ms O’Reilly said. “As the dominant provider of gas transmission in Victoria, GasNet stands to benefit from Australia’s deregulated energy market as

demand for environmentally acceptable natural gas grows. “GasNet is a pure infrastructure business with well-engineered and well-managed assets designed for long life and low maintenance costs,” she added. GasNet evolved from GPU Inc, a major USbased international utility, which acquired the assets of GasNet from the Victorian Government in June 1999 as part of the State’s gas industry privatisation process. As a result of GPU’s subsequent merger with First Energy, GPU is exiting the Australian

the WORLD is yours

These pipelines were built in response to the gas supply interruptions following the Longford gas plant explosion and to take advantage of the expected growth in gas consumption. Natural gas usage has experienced strong growth and is expected to account for approximately 24 per cent of total primary energy usage in Australia by 2019. F O R M O R E I N F O R M AT I O N C O N TA C T:

Christine O’Reilly, Chief Executive Officer - GasNet Tel: (03) 9797 5184 or 1300 855 553 or visit www.gasnet.com.au, email: [email protected].

You’ll find a world of information on Victorian mining, geology and petroleum in the Department of Natural Resources’ Minerals and Petroleum Reference Centre. Although focussed to serve members of the mining industry, the MPRC is open to the public from 8.30am to 5pm, Monday to Friday. It is conveniently located next to the Minerals Business Centre.

special collections include: • Expired tenement reports on microfiche (and hard copy) • 5000+ Geological Survey of Victoria Unpublished Reports • Departmental publications (old Mines Department records and reports dating from 1851) • Victorian published geological maps, both current and historical • Underground mine plans on microfiche • 1600+ B&W historical Victorian mining photographs The MPRC is now located with the Minerals Business Centre on the 8th floor, Department of Natural Resources and Environment, 240 Victoria Parade, East Melbourne. Phone: (03) 9412 5145. Fax: (03) 9412 5157. E-mail:[email protected]

18

Gold Council moves to Melbourne he Australian Gold Council, established three years ago to represent the gold industry and improve marketing initiatives, has appointed a new executive director and moved its headquarters to Melbourne.

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The new executive director, Tamara Stephens, replaces Greg Barns, the Council’s first full time executive director. Mr Barns told Discovery that the Australian Gold Council was as at home in Melbourne as any other major east coast city but had to be close to the nation’s major population base, its financial centres and close to the major political debate. Since its inception three years ago the Australian Gold Council has quickly become a leading player in the political issues which affect the industry. Mr Barns said, “We are seeing a bit of a renaissance in gold mining in Victoria and we are holding our Australian Gold Conference there this year, reflecting that new interest in the industry.” “After two years in the role as executive director I felt it was time to hand over to someone new. Tamara brings the right set of skills to the Council in terms of marketing gold,” Mr Barns said.

Tamara Stephens has a substantial history in the mining industry coming from Perth where she has worked for a number of industry associations including several years with the Association of Mining and Exploration Companies and with the Western Australian Wine Association.

SINCE ITS INCEPTION THREE YEARS AGO THE AUSTRALIAN GOLD COUNCIL HAS QUICKLY BECOME A LEADING PLAYER IN THE POLITICAL ISSUES WHICH AFFECT THE INDUSTRY “I am thrilled to have been offered this opportunity to represent the Australian gold industry,” Ms Stephens told Discovery. “I have an abiding interest in the industry and the minerals sector in general. “Moving the Australian Gold Council to Victoria in the year of the 150th anniversary of the discovery of gold in the state looks like an auspicious time for the council and the industry,” Ms Stephens said. “I have a very strong belief in gold as an industry and I am very happy to be in a position to promote the product.” The Australian Gold Council was formed in 1998 to represent the interests of the Australian gold industry. With a membership comprised of producers, explorers and associates the council aims to promote and improve the profile of the Australian gold industry within Australia and overseas and to ensure that the investment climate for the industry maximises growth and capacity. The council also seeks to highlight the gold industry's social, economic and regional importance to Australia and seek to improve capital access and enhance the investment climate for the industry. With such a mission, the actual location of the Council’s headquarters is not of great importance, Mr Barns said. But by being located in Melbourne the gold industry in Victoria will gain added impetus. The Australian Gold Council is primarily interested to ensure that all Australians 19

Greg Barnes has left the Australian Gold Council after two years to be replaced by Tamara Stephens.

appreciate the economic and social significance of the Australian gold industry in the 21st century. It wants to ensure that the right regulatory and financial climate exists for investment in the gold industry and to encourage greater investment in gold companies listed on the Australian Stock Exchange and reduce barriers to investment in the gold exploration sector. Importantly the Council has acquired the role of promoting value-adding opportunities for gold producers through linkages with the jewellery sector and industrial users of gold. To do this it encourages increased research and development into industrial uses of gold, to promote the Australian gold refinery industry and to work with major educational and information outlets such as museums and technology sectors so that the story of gold, both past present and future, is readily accessible to the community. F O R M O R E I N F O R M AT I O N C O N TA C T:

Tamara Stephens Executive Director, Australian Gold Council Email: [email protected] Tel: (02) 9923 2446 Fax: (02) 9923 1130

BROWN COAL

GAS INDUSTRY

3D look at Vic coal areas he vast brown coal resources of Victoria’s Latrobe Valley are to be modelled using the latest digital technology to provide a comprehensive, three-dimensional picture of the coalfields that cover an area stretching from Moe to Rosedale.

Pipeline battle nears finality ictoria’s offshore gas industry is on the brink of its busiest growth phase since the discovery of the Bass Strait oil and gas fields in the 1960’s with three major projects worth more than $A1 billion set for development.

V

T

Concurrently, the race to build the first major gas pipeline direct link from Victoria to South Australia, is reaching a crucial stage.

The digital geological model will be used by explorers and potential coalfield developers to assist in assessments of how the resource is best utilized, as well as land planners.

Two groups are moving ahead with plans to build a gas pipeline between Port Campbell in southwestern Victoria and Adelaide to serve the rapidly expanding SA market.

Three, high-calibre resource modelling groups have submitted tenders to produce the digital geological model with a winning tender due to be selected in February. Although providing Victoria with a reliable electricity source for the past 80 years, only a fraction of the available Latrobe Valley brown coal has been mined.

Partners and foundation shippers underwriting the SEA Gas project are Origin Energy and Australian National Power who collectively account for over 70 per cent of current gas demand in SA. They are on schedule to reach financial closure on their project by March, with commissioning of the pipeline planned for January 2004.

The Victorian Government recently called for tenders for the majority of the remaining coal resources. This is the first time in 80 years that the public will gain access to the resource. Previously, brown coal reserves were isolated for the exclusive use of the state’s electricity generation industry. Opportunities exist for the continued utilisation of these resources for electricity production, gasification, liquefaction and other coal conversion processes, solid fuel for industrial, domestic and other uses.

The rival consortium, comprising Duke Energy International and Victorian gas pipeline operator, GasNet Ltd, say their pipeline, pending finalisation of commercial negotiations with customers, could be in commercial operation by the end of 2003

Brown coal resources outside the existing mine areas were last calculated in the early 1980s, before the advent of computerised modelling and mine planning. Since then, the parameters affecting the economics of coal mining have changed , throwing much of the previous work on modelling the resource out of date. Digital models are used at all the existing mines for mine planning and reserve management and as a key tool in extracting the coal in the most economically efficient manner. The remainder of the resource area has not been digitally modelled and much of the understanding of the brown coal resources developed in the 1980s is at risk of being lost.

With an initial capacity of up to 70 petajoules a year, the pipeline also will have a large volume of spare capacity to supply other gas users, either power generators or industrial consumers. The SEA Gas consortium was named as the South Australian Government’s preferred provider of new gas into the state in March last year. Mr King said that on the strength of

Both pipelines are planned along similar routes, have similar costs (around $250m), offer large capacity (70 to 100 petajoules a year) and will have significant volumes of spare capacity for other gas users.

The Latrobe Valley contains at least 160,000 million tonnes of brown coal, with approximately 35 million tonnes of this currently considered to be economically viable for use in power generation or other industry applications. Most of Victoria’s electricity is generated using coal from the Loy Yang, Hazelwood and Yallourn coalfields.

This is where the new digital model of the coal resources will be useful.

National Power and Origin retail and growing generation business in Adelaide.

The modelling project is a collaboration between the Departments of State and Regional Development and Natural Resources and Environment through the Geological Survey of Victoria which has the geological expertise to manage the development of the model. It is one of the stated outcomes of the Victorian Government’s Latrobe Valley Ministerial Taskforce ‘Framework for the Future’. The model is designed to provide seamless, comprehensive information on the geology and resource that will assist with coal utilisation and land-use planning. Eventually, the model will be available to any interested group on request at a nominal cost. Because of its three-dimensional nature, users will be able to visualise and/or calculate coal seam thickness, extent and volume/tonnage and the thickness of any interseam material as well as understand the overburden geometry. Users will also be able to understand stratigraphy, fold and fault geometry; and obtain 20

The Latrobe Valley's brown coal resources will be mapped using the latest, 3-D digital technology as part of a package designed to attract new interest in developing one of Victoria's most valuable natural resources. The 3D maps will allow potential users of the coal resources to more accurately plan future development projects.

detailed coal-quality information. Most of the information to be logged in the digital model will be drawn from extensive drilling conducted over many years by the former State Electricity Commission of Victoria (SECV) which was broken up and sold in the early 1990’s. Development of the model will run throughout 2002, with final delivery due early next year. F O R M O R E I N F O R M AT I O N C O N TA C T:

Simon Maher Geological Survey of Victoria Tel: (03) 9412 5073

The winner of the pipeline race should be known in the next few months, with each consortium presently insisting it will win the deal. Origin Energy managing director, Grant King, describes the SEA Gas pipeline as “heralding the most significant energy infrastructure development into South Australia in the last 30 years.” Mr King told energy industry leaders at the Australian Gas Association Convention in Sydney recently that the SEA Gas project was on time and on budget. The $A250 million pipeline would initially deliver Victorian gas into South Australia to supply power stations operated by Australian New, high-pressure gas pipelines radiating from Victoria will make the state one of keys to the future of Australia's rapidly developing gas industry. Not only does Victoria meet its own requirements, plans are in place or underway to supply NSW, South Australia and Tasmania with clean-burning natural gas.

21

the SA government’s mandate, SEA Gas had spent more than $1 million a month to meet all deadlines imposed by the SA Government’s facilitation agreement. “This includes delivering a project without government subsidy,” Mr King said. “Origin Energy is extremely pleased with the project’s progress. The project route is fully surveyed, the engineering procurement and construction contract is out to tender and the environmental

BROWN COAL

GAS INDUSTRY

3D look at Vic coal areas he vast brown coal resources of Victoria’s Latrobe Valley are to be modelled using the latest digital technology to provide a comprehensive, three-dimensional picture of the coalfields that cover an area stretching from Moe to Rosedale.

Pipeline battle nears finality ictoria’s offshore gas industry is on the brink of its busiest growth phase since the discovery of the Bass Strait oil and gas fields in the 1960’s with three major projects worth more than $A1 billion set for development.

V

T

Concurrently, the race to build the first major gas pipeline direct link from Victoria to South Australia, is reaching a crucial stage.

The digital geological model will be used by explorers and potential coalfield developers to assist in assessments of how the resource is best utilized, as well as land planners.

Two groups are moving ahead with plans to build a gas pipeline between Port Campbell in southwestern Victoria and Adelaide to serve the rapidly expanding SA market.

Three, high-calibre resource modelling groups have submitted tenders to produce the digital geological model with a winning tender due to be selected in February. Although providing Victoria with a reliable electricity source for the past 80 years, only a fraction of the available Latrobe Valley brown coal has been mined.

Partners and foundation shippers underwriting the SEA Gas project are Origin Energy and Australian National Power who collectively account for over 70 per cent of current gas demand in SA. They are on schedule to reach financial closure on their project by March, with commissioning of the pipeline planned for January 2004.

The Victorian Government recently called for tenders for the majority of the remaining coal resources. This is the first time in 80 years that the public will gain access to the resource. Previously, brown coal reserves were isolated for the exclusive use of the state’s electricity generation industry. Opportunities exist for the continued utilisation of these resources for electricity production, gasification, liquefaction and other coal conversion processes, solid fuel for industrial, domestic and other uses.

The rival consortium, comprising Duke Energy International and Victorian gas pipeline operator, GasNet Ltd, say their pipeline, pending finalisation of commercial negotiations with customers, could be in commercial operation by the end of 2003

Brown coal resources outside the existing mine areas were last calculated in the early 1980s, before the advent of computerised modelling and mine planning. Since then, the parameters affecting the economics of coal mining have changed , throwing much of the previous work on modelling the resource out of date. Digital models are used at all the existing mines for mine planning and reserve management and as a key tool in extracting the coal in the most economically efficient manner. The remainder of the resource area has not been digitally modelled and much of the understanding of the brown coal resources developed in the 1980s is at risk of being lost.

With an initial capacity of up to 70 petajoules a year, the pipeline also will have a large volume of spare capacity to supply other gas users, either power generators or industrial consumers. The SEA Gas consortium was named as the South Australian Government’s preferred provider of new gas into the state in March last year. Mr King said that on the strength of

Both pipelines are planned along similar routes, have similar costs (around $250m), offer large capacity (70 to 100 petajoules a year) and will have significant volumes of spare capacity for other gas users.

The Latrobe Valley contains at least 160,000 million tonnes of brown coal, with approximately 35 million tonnes of this currently considered to be economically viable for use in power generation or other industry applications. Most of Victoria’s electricity is generated using coal from the Loy Yang, Hazelwood and Yallourn coalfields.

This is where the new digital model of the coal resources will be useful.

National Power and Origin retail and growing generation business in Adelaide.

The modelling project is a collaboration between the Departments of State and Regional Development and Natural Resources and Environment through the Geological Survey of Victoria which has the geological expertise to manage the development of the model. It is one of the stated outcomes of the Victorian Government’s Latrobe Valley Ministerial Taskforce ‘Framework for the Future’. The model is designed to provide seamless, comprehensive information on the geology and resource that will assist with coal utilisation and land-use planning. Eventually, the model will be available to any interested group on request at a nominal cost. Because of its three-dimensional nature, users will be able to visualise and/or calculate coal seam thickness, extent and volume/tonnage and the thickness of any interseam material as well as understand the overburden geometry. Users will also be able to understand stratigraphy, fold and fault geometry; and obtain 20

The Latrobe Valley's brown coal resources will be mapped using the latest, 3-D digital technology as part of a package designed to attract new interest in developing one of Victoria's most valuable natural resources. The 3D maps will allow potential users of the coal resources to more accurately plan future development projects.

detailed coal-quality information. Most of the information to be logged in the digital model will be drawn from extensive drilling conducted over many years by the former State Electricity Commission of Victoria (SECV) which was broken up and sold in the early 1990’s. Development of the model will run throughout 2002, with final delivery due early next year. F O R M O R E I N F O R M AT I O N C O N TA C T:

Simon Maher Geological Survey of Victoria Tel: (03) 9412 5073

The winner of the pipeline race should be known in the next few months, with each consortium presently insisting it will win the deal. Origin Energy managing director, Grant King, describes the SEA Gas pipeline as “heralding the most significant energy infrastructure development into South Australia in the last 30 years.” Mr King told energy industry leaders at the Australian Gas Association Convention in Sydney recently that the SEA Gas project was on time and on budget. The $A250 million pipeline would initially deliver Victorian gas into South Australia to supply power stations operated by Australian New, high-pressure gas pipelines radiating from Victoria will make the state one of keys to the future of Australia's rapidly developing gas industry. Not only does Victoria meet its own requirements, plans are in place or underway to supply NSW, South Australia and Tasmania with clean-burning natural gas.

21

the SA government’s mandate, SEA Gas had spent more than $1 million a month to meet all deadlines imposed by the SA Government’s facilitation agreement. “This includes delivering a project without government subsidy,” Mr King said. “Origin Energy is extremely pleased with the project’s progress. The project route is fully surveyed, the engineering procurement and construction contract is out to tender and the environmental

GAS INDUSTRY

GAS INDUSTRY

report has been completed and released for community consultation.”

from Port Campbell through Portland, then to Mt Gambier in SA and on to Adelaide.

The SEA Gas project has been determined by the Commonwealth environment Minister not to be a controlled action. It now awaits SA and Victorian Government licences and approvals.

Duke Energy’s general manager of commercial development, Chris Brooks, said there remained a need for additional gas in the South Australian market to fulfill growing power generation and industrial requirements.

“SEA Gas creates a corridor for major Origin Energy growth projects, including the proposed development of the new Thylacine/Geographe gas discoveries in the offshore Otway Basin, the SEA Gas project itself and the Quarantine Power Station, which is currently being commissioned. “It will also provide a major stimulus for investment in other infrastructure and development in South Australia," Mr King said. “This open access gas pipeline will deliver the energy equivalent of three times the existing electricity interconnector between South Australia and Victoria and will add up to 70 per cent to inbound gas supply to Adelaide. This will not only secure gas supplies for South Australia but also will significantly contribute to improved supply of electricity in South Australia and Victoria.”

The Southern Gas Pipeline partners say the project is expected to cost $250 million and, pending finalisation of commercial negotiations with customers, could be in commercial operation by the end of 2003. The two companies had earlier independently investigated pipeline projects in the region. However, they decided to pool their resources and expertise to develop and jointly own the pipeline. Under the proposed joint venture, GasNet will

TXU, one of the largest consumers of gas in South Australia, is one company that has been working closely with DEI and GasNet on the project. Whatever the outcome of the pipeline race, it is stimulating gas development in Victoria, where at least three major offshore gas field developments will be required to supply the market. Initially the SEA gas pipeline will directly stimulate development of the Minerva field offshore from Port Campbell and the Yolla field in Bass Strait, almost midway between Victoria and Tasmania. Origin Energy is developing the Yolla field at a cost of $A400 million. It will bring gas and associated petroleum liquids ashore east of Westernport Bay, near Cape Liptrap.

Gippsland gas activity ork has started on laying the $400 million high-pressure gas pipeline across Bass Strait to Tasmania. One of the largest infrastructure projects in Australia, the 714 kilometre pipeline will transport gas from Longford in Eastern Victoria across Bass Strait to Bell Bay, giving Tasmania its first ever access to a reticulated gas supply.

W

The 350mm pipeline will have the capacity to transport up to 40 petajoules of gas a year, with the first delivery to Bell Bay expected in June this year. Offshore contractor Allseas Construction Contractors, using the vessel Lorelay, started laying 305km of pipe across Bass Strait before Christmas. McConnell Dowell Constructors (Aust) Pty Ltd started work in January on the

A substantial offshore platform and associated pipelines must be constructed to produce the gas and deliver it to the coast. The gas will then be sold to Origin for transport into its SEA Gas pipeline destined for South Australia.

The SEA gas pipeline is proposed to start just upstream from the Iona gas field processing plant near Port Campbell.

Australian National Power also has an agreement to acquire gas from the BHP/Billiton Minerva gas field, which lies offshore in the Otway Basin about 12 km south of Port Campbell. Minerva will also become an important factor in Victoria’s push to develop multiple sources of gas supply.

From there, it will run 10 km to the Minerva gas plant processing facility and on to Casterton before heading to Adelaide. Sea Gas has signed easement agreements with most of the nearly 600 landowners along the pipeline route. Origin has procured gas supplies for the pipeline from its portfolio of Gippsland gas, the Yolla development and its interests in the new Thylacine/Geographe discoveries in the offshore Otway Basin. Australian National Power is buying its gas supply from BHPP’s Minerva field development. The pipeline itself will be 14 inches in diameter and is likely to use a single compressor station, initially at its mid point. SEA Gas project general manager, Stephen Timms, told Discovery that construction would start shortly after financial close in March. He said that one possibility for future growth of the project was the proposed South Australian magnesium (SAMAG) project. SEA Gas and SAMAG were currently “running in parallel”, he said, but added that SEA Gas was underwritten by Australian National Power and Origin’s commitments, and would proceed regardless of SAMAG’s timing. Negotiations with one potential third party gas consumer in South Australia were “advancing well” while several other companies were also considering their options for future gas supplies with early stage negotiations underway. However, all this has not deterred rival consortium partners, Duke Energy International and GasNet, who are pushing ahead with plans to build their own 670km Southern Gas Pipeline

had indicated strong support for a single pipeline capable of meeting all projected loads and delivering the lowest tariff.

The giant pipelaying ship, Lorelay, has begun installing the undersea gas pipeline which will link Victoria to Tasmania. The new pipeline will connect Esso's Longford gas plant across Bass Strait to the north coast of Tasmania before being branched to supply the entire state.

BHP/Billiton is currently calling tenders for the development of an offshore facility on the Minerva field and associated sub-sea pipeline and onshore gas processing facilities. Both the Yolla and Minerva are expected to be in production by January 2004. The SeaGas consortium and Duke Energy International are engaged in an enthralling battle to win the right to develop a new gas pipeline from western Victoria into South Australia as a part of the merging national gas grid system. Surveys of the pipeline route and easements plans are already well underway.

be responsible for design, construction and operation of the pipeline with DEI responsible for commercial operation, including negotiation of transportation contracts with shippers. Surveys, environmental studies and commercial negotiations with energy users are underway. Preliminary engineering has been completed and easement acquisition is well advanced, according to Mr Brook. The Southern Gas pipeline is expected to be a 16 inch diameter line with an initial capacity of approximately 100 petajoules a year, enough to provide for electricity generation and for the industrial and domestic markets. A DEI spokesman said a number of shippers 22

Five Mile Bluff to Port Latta portion of the pipeline across northern Tasmania. The pipeline will also transport gas south to the Hobart area.

By that time, Origin Energy is also planning to develop its exciting offshore Thylacine and Geographe gas fields in the Otway Basin.

Construction has also started on the first nonEsso/BHP Billiton gas field to be developed in the Gippsland Basin.

Thylacine and Geographe are large fields and, together with new, smaller, gas discoveries in the onshore portion of the Otway Basin, have resulted in a substantial lift in Victoria’s gas reserves.

OMV and its partner, Diamond Gas Resources, will build a small gas plant near Orbost to produce around 50 mmcfgpd into the Eastern Gas pipeline.

Combined with the construction of new gas production facilities in Bass Strait by Esso/BHP Billiton and OMV and its partners, Victoria is now rivalling Western Australia as the gas industry’s most active state.

The near-98 per cent methane from the Patricia Baleen field is accompanied by very little water and essentially only requires compression. OMV will use the Lorelay to lay the pipeline after it finishes the Duke pipeline to Tasmania.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Gas is expected on stream for winter 2002.

Grant King Managing Director, Origin Energy Tel: 02 9220 6470 or Michelle Barry Public Affairs Manager Duke Energy International Tel: 07 3334 5800

F O R M O R E I N F O R M AT I O N C O N TA C T:

Duke Energy International Michelle Barry Tel: 0414 790 480

23

GAS INDUSTRY

GAS INDUSTRY

report has been completed and released for community consultation.”

from Port Campbell through Portland, then to Mt Gambier in SA and on to Adelaide.

The SEA Gas project has been determined by the Commonwealth environment Minister not to be a controlled action. It now awaits SA and Victorian Government licences and approvals.

Duke Energy’s general manager of commercial development, Chris Brooks, said there remained a need for additional gas in the South Australian market to fulfill growing power generation and industrial requirements.

“SEA Gas creates a corridor for major Origin Energy growth projects, including the proposed development of the new Thylacine/Geographe gas discoveries in the offshore Otway Basin, the SEA Gas project itself and the Quarantine Power Station, which is currently being commissioned. “It will also provide a major stimulus for investment in other infrastructure and development in South Australia," Mr King said. “This open access gas pipeline will deliver the energy equivalent of three times the existing electricity interconnector between South Australia and Victoria and will add up to 70 per cent to inbound gas supply to Adelaide. This will not only secure gas supplies for South Australia but also will significantly contribute to improved supply of electricity in South Australia and Victoria.”

The Southern Gas Pipeline partners say the project is expected to cost $250 million and, pending finalisation of commercial negotiations with customers, could be in commercial operation by the end of 2003. The two companies had earlier independently investigated pipeline projects in the region. However, they decided to pool their resources and expertise to develop and jointly own the pipeline. Under the proposed joint venture, GasNet will

TXU, one of the largest consumers of gas in South Australia, is one company that has been working closely with DEI and GasNet on the project. Whatever the outcome of the pipeline race, it is stimulating gas development in Victoria, where at least three major offshore gas field developments will be required to supply the market. Initially the SEA gas pipeline will directly stimulate development of the Minerva field offshore from Port Campbell and the Yolla field in Bass Strait, almost midway between Victoria and Tasmania. Origin Energy is developing the Yolla field at a cost of $A400 million. It will bring gas and associated petroleum liquids ashore east of Westernport Bay, near Cape Liptrap.

Gippsland gas activity ork has started on laying the $400 million high-pressure gas pipeline across Bass Strait to Tasmania. One of the largest infrastructure projects in Australia, the 714 kilometre pipeline will transport gas from Longford in Eastern Victoria across Bass Strait to Bell Bay, giving Tasmania its first ever access to a reticulated gas supply.

W

The 350mm pipeline will have the capacity to transport up to 40 petajoules of gas a year, with the first delivery to Bell Bay expected in June this year. Offshore contractor Allseas Construction Contractors, using the vessel Lorelay, started laying 305km of pipe across Bass Strait before Christmas. McConnell Dowell Constructors (Aust) Pty Ltd started work in January on the

A substantial offshore platform and associated pipelines must be constructed to produce the gas and deliver it to the coast. The gas will then be sold to Origin for transport into its SEA Gas pipeline destined for South Australia.

The SEA gas pipeline is proposed to start just upstream from the Iona gas field processing plant near Port Campbell.

Australian National Power also has an agreement to acquire gas from the BHP/Billiton Minerva gas field, which lies offshore in the Otway Basin about 12 km south of Port Campbell. Minerva will also become an important factor in Victoria’s push to develop multiple sources of gas supply.

From there, it will run 10 km to the Minerva gas plant processing facility and on to Casterton before heading to Adelaide. Sea Gas has signed easement agreements with most of the nearly 600 landowners along the pipeline route. Origin has procured gas supplies for the pipeline from its portfolio of Gippsland gas, the Yolla development and its interests in the new Thylacine/Geographe discoveries in the offshore Otway Basin. Australian National Power is buying its gas supply from BHPP’s Minerva field development. The pipeline itself will be 14 inches in diameter and is likely to use a single compressor station, initially at its mid point. SEA Gas project general manager, Stephen Timms, told Discovery that construction would start shortly after financial close in March. He said that one possibility for future growth of the project was the proposed South Australian magnesium (SAMAG) project. SEA Gas and SAMAG were currently “running in parallel”, he said, but added that SEA Gas was underwritten by Australian National Power and Origin’s commitments, and would proceed regardless of SAMAG’s timing. Negotiations with one potential third party gas consumer in South Australia were “advancing well” while several other companies were also considering their options for future gas supplies with early stage negotiations underway. However, all this has not deterred rival consortium partners, Duke Energy International and GasNet, who are pushing ahead with plans to build their own 670km Southern Gas Pipeline

had indicated strong support for a single pipeline capable of meeting all projected loads and delivering the lowest tariff.

The giant pipelaying ship, Lorelay, has begun installing the undersea gas pipeline which will link Victoria to Tasmania. The new pipeline will connect Esso's Longford gas plant across Bass Strait to the north coast of Tasmania before being branched to supply the entire state.

BHP/Billiton is currently calling tenders for the development of an offshore facility on the Minerva field and associated sub-sea pipeline and onshore gas processing facilities. Both the Yolla and Minerva are expected to be in production by January 2004. The SeaGas consortium and Duke Energy International are engaged in an enthralling battle to win the right to develop a new gas pipeline from western Victoria into South Australia as a part of the merging national gas grid system. Surveys of the pipeline route and easements plans are already well underway.

be responsible for design, construction and operation of the pipeline with DEI responsible for commercial operation, including negotiation of transportation contracts with shippers. Surveys, environmental studies and commercial negotiations with energy users are underway. Preliminary engineering has been completed and easement acquisition is well advanced, according to Mr Brook. The Southern Gas pipeline is expected to be a 16 inch diameter line with an initial capacity of approximately 100 petajoules a year, enough to provide for electricity generation and for the industrial and domestic markets. A DEI spokesman said a number of shippers 22

Five Mile Bluff to Port Latta portion of the pipeline across northern Tasmania. The pipeline will also transport gas south to the Hobart area.

By that time, Origin Energy is also planning to develop its exciting offshore Thylacine and Geographe gas fields in the Otway Basin.

Construction has also started on the first nonEsso/BHP Billiton gas field to be developed in the Gippsland Basin.

Thylacine and Geographe are large fields and, together with new, smaller, gas discoveries in the onshore portion of the Otway Basin, have resulted in a substantial lift in Victoria’s gas reserves.

OMV and its partner, Diamond Gas Resources, will build a small gas plant near Orbost to produce around 50 mmcfgpd into the Eastern Gas pipeline.

Combined with the construction of new gas production facilities in Bass Strait by Esso/BHP Billiton and OMV and its partners, Victoria is now rivalling Western Australia as the gas industry’s most active state.

The near-98 per cent methane from the Patricia Baleen field is accompanied by very little water and essentially only requires compression. OMV will use the Lorelay to lay the pipeline after it finishes the Duke pipeline to Tasmania.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Gas is expected on stream for winter 2002.

Grant King Managing Director, Origin Energy Tel: 02 9220 6470 or Michelle Barry Public Affairs Manager Duke Energy International Tel: 07 3334 5800

F O R M O R E I N F O R M AT I O N C O N TA C T:

Duke Energy International Michelle Barry Tel: 0414 790 480

23

SPECIAL FEATURE

While new technology has eased the burden on modern geologists, there is no substitute for getting out into the bush and seeing the rocks first hand. Teams of GSV geologists still comb the state to gain first-hand knowledge of the state’s geology.

THE GEOLOGICAL SURVEY OF VICTORIA WAS THE FIRST GEOLOGICAL SURVEY TO BE ESTABLISHED IN AUSTRALIA, AND ONE OF THE EARLIEST IN THE WORLD.

Maps were produced at such a high rate that he was forced to find new methods of mass printing of coloured maps.

GSV celebrates 150th he staff of the Geological Survey are celebrating its 150th anniversary this year. An exhibition of maps, plans, photos and implements used in map production will form a special display at the Museum of Victoria.

T

This exhibition, to be opened by the Minister for Energy and Resources, Ms Candy Broad, on May 3 will run for several months, and includes a great deal of never-displayed manuscript material. The Geological Survey of Victoria was the The forerunners of today's high-tech, airborne geological surveying techniques were laborious exercises on foot or on horseback to examine Victoria's unique geology. Above, William Baragwanath (far left) and a geological survey party prepare to leave Walhalla on a mapping expedition in 1904. (Left) Alfred Selwyn, Victoria's first Mineralogical surveyor.

24

first Geological Survey to be established in Australia and one of the earliest in the world. The discovery of gold in Victoria in 1851 sparked a vast rush which led, in the following year, to the appointment of Alfred Selwyn as ‘Mineralogical Surveyor’ for the colony (then newly separated from New South Wales under the name Port Phillip District). Selwyn began work immediately upon disembarking in Melbourne, first with a single assistant and later with an additional worker. Selwyn, who had worked as a geologist with the British Geological Survey before his arrival in Australia, was formally named as Government Geologist and Director of Mining and Geological Surveys in 1863. Selwyn and his gradually increasing staff made a remarkable series of maps in the sixteen years that he worked in Victoria, including the first geological map of the State in 1863.

In the years since Selwyn, the Survey has extended into other areas such as detailed mapping of goldfields and other mineral occurrences and construction materials and the search for energy resources, first in the form of black and brown coal and later oil and gas.

In recent decades, GSV’s main effort has swung back to the core activity of mapping. Acquisition of detailed airborne geophysical data began in the 1990s under the Victorian Initiative for Minerals and Petroleum (VIMP).

This led the Survey into into documenting the various Mesozoic and Cainozoic basins, supported by a large crew of drillers.

The entire state is now covered by detailed airborne geophysical data that provide the most comprehensive data set of its type of any Australian state. Analysis of this data has made a major impact on the approach to geological mapping and the combination of new geophysical data and new mapping culminated in the publication, in October 2000, of the special publication, the Tasman Fold Belt System.

Work by the Geological Survey led to the successful development of the major brown coal resources in the Latrobe Valley in the 1920s. While the famous American geologist, Lewis Weeks, is given much of the credit, it was the Victorian Geological Survey which first suggested, in 1955, that the search for oil should be conducted offshore in Bass Strait.

Another part of the 150th celebration will be the Selwyn Lecture on May 9, the highlight of the monthly Geological Society of Australia (Victorian Division) lecture series.

What followed, of course, was the discovery of one of the world’s finest and most productive oil and gas fields, still producing today after more than 30 years.

Tom Darragh will speak on the history of map-making under Selwyn, in which the GSV was a pioneer at the time.

The need to find groundwater in rural Victoria became important in the 1960s and, by the 1980s, half of the Survey’s staff were involved in the exploration and management of groundwater resources.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Peter O’Shea Manager Geological Mapping Geological Survey of Victoria Tel: (03)94125093 Fax: (03)94125155 Email: Peter.O’[email protected]

An engineering geological section provided vital data on ground conditions for a series of major projects during the last half of the 20th century. Now, both groundwater and engineering geological services are provided by private industry. 25

SPECIAL FEATURE

While new technology has eased the burden on modern geologists, there is no substitute for getting out into the bush and seeing the rocks first hand. Teams of GSV geologists still comb the state to gain first-hand knowledge of the state’s geology.

THE GEOLOGICAL SURVEY OF VICTORIA WAS THE FIRST GEOLOGICAL SURVEY TO BE ESTABLISHED IN AUSTRALIA, AND ONE OF THE EARLIEST IN THE WORLD.

Maps were produced at such a high rate that he was forced to find new methods of mass printing of coloured maps.

GSV celebrates 150th he staff of the Geological Survey are celebrating its 150th anniversary this year. An exhibition of maps, plans, photos and implements used in map production will form a special display at the Museum of Victoria.

T

This exhibition, to be opened by the Minister for Energy and Resources, Ms Candy Broad, on May 3 will run for several months, and includes a great deal of never-displayed manuscript material. The Geological Survey of Victoria was the The forerunners of today's high-tech, airborne geological surveying techniques were laborious exercises on foot or on horseback to examine Victoria's unique geology. Above, William Baragwanath (far left) and a geological survey party prepare to leave Walhalla on a mapping expedition in 1904. (Left) Alfred Selwyn, Victoria's first Mineralogical surveyor.

24

first Geological Survey to be established in Australia and one of the earliest in the world. The discovery of gold in Victoria in 1851 sparked a vast rush which led, in the following year, to the appointment of Alfred Selwyn as ‘Mineralogical Surveyor’ for the colony (then newly separated from New South Wales under the name Port Phillip District). Selwyn began work immediately upon disembarking in Melbourne, first with a single assistant and later with an additional worker. Selwyn, who had worked as a geologist with the British Geological Survey before his arrival in Australia, was formally named as Government Geologist and Director of Mining and Geological Surveys in 1863. Selwyn and his gradually increasing staff made a remarkable series of maps in the sixteen years that he worked in Victoria, including the first geological map of the State in 1863.

In the years since Selwyn, the Survey has extended into other areas such as detailed mapping of goldfields and other mineral occurrences and construction materials and the search for energy resources, first in the form of black and brown coal and later oil and gas.

In recent decades, GSV’s main effort has swung back to the core activity of mapping. Acquisition of detailed airborne geophysical data began in the 1990s under the Victorian Initiative for Minerals and Petroleum (VIMP).

This led the Survey into into documenting the various Mesozoic and Cainozoic basins, supported by a large crew of drillers.

The entire state is now covered by detailed airborne geophysical data that provide the most comprehensive data set of its type of any Australian state. Analysis of this data has made a major impact on the approach to geological mapping and the combination of new geophysical data and new mapping culminated in the publication, in October 2000, of the special publication, the Tasman Fold Belt System.

Work by the Geological Survey led to the successful development of the major brown coal resources in the Latrobe Valley in the 1920s. While the famous American geologist, Lewis Weeks, is given much of the credit, it was the Victorian Geological Survey which first suggested, in 1955, that the search for oil should be conducted offshore in Bass Strait.

Another part of the 150th celebration will be the Selwyn Lecture on May 9, the highlight of the monthly Geological Society of Australia (Victorian Division) lecture series.

What followed, of course, was the discovery of one of the world’s finest and most productive oil and gas fields, still producing today after more than 30 years.

Tom Darragh will speak on the history of map-making under Selwyn, in which the GSV was a pioneer at the time.

The need to find groundwater in rural Victoria became important in the 1960s and, by the 1980s, half of the Survey’s staff were involved in the exploration and management of groundwater resources.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Peter O’Shea Manager Geological Mapping Geological Survey of Victoria Tel: (03)94125093 Fax: (03)94125155 Email: Peter.O’[email protected]

An engineering geological section provided vital data on ground conditions for a series of major projects during the last half of the 20th century. Now, both groundwater and engineering geological services are provided by private industry. 25

GOLD EXPLORATION

GOLD EXPLORATION

The mill, at Porcupine Flat, just outside Maldon, has remained on care and maintenance since Alliance Gold Mines closed the Union Hill open pit in 1997.

Maldon searches old for new estern Australian mining groups, Central Kalgoorlie Goldmines Ltd and Roxbury Mining Contractors Pty Ltd have formed a 50-50 joint venture to mine and process ore from the Nuggetty Reef at Maldon in central Victoria.

Between 1987 and 1995, Roxbury completed underground mining projects for Amalg Resources at Spargos Reward Gold Mine, 1A Nickel Mine in WA, Wheel Hughes in SA and Lady Eloise Mine in Queensland.

W

In 1995 Roxbury sold all existing contracts and equipment to Henry Walker Mining Contractors.

The two companies plan to re-open the old goldfield, last worked by Alliance Gold Mines in 1997, via a decline of approximately 150 metres.

As part of the sale agreement, the outgoing owner of Roxbury agreed not to operate in the contract mining field for a period of three years.

The Nuggetty Reef lies at the Northern end of the Maldon goldfield, close to the granite contact and has produced more than 300,000 ounces of gold from 50,000 tonnes of ore. Much of this production was from surface enriched ore but rich grades, in excess of 10 ounces per tonne, were reported from ore from the primary zone. Now the new operators want to open a second open pit to the south of the existing Union Hill pit while Central Kalgoorlie Goldmines are keen to construct a decline into the known Nuggetty North resource which lies to the north of the Union Hill pit. Much of the new gold resource has been determined from earlier exploration work by previous owners of the Maldon mine. In 1997 Alliance Gold Mines NL completed a drilling program targetting a zone to the south of the original Nuggetty workings. Nuggetty Reef was intersected in all holes showing continuity over at least 120 metres of strike and 100 metres vertically with eight of the 14 diamond drill holes reporting significant gold grades including three with visible gold. The best intersections' reported by Alliance from the drilling program included: 0.8metres at 80 g/t Au in DDH 62, 2.7m at 42 g/t Au (including 0.35m at 188 g/t Au) in DDH 57W1, 0.6m at 15.2 g/t Au in DDH 60 and 0.7m at 6.4g/t Au in DDH6l Wl. Previous drilling by other companies suggested that the reef, with several high-grade gold intersections (including 1.0m at 45.5 g/t Au) extended for at least a further 270 metres to the south. In September 2001 Roxbury entered into an option agreement with Alliance for the sale of its Maldon Gold Project to Roxbury. Under the terms of this option, Roxbury will meet all of Alliance's project costs while

In late 1998, the former senior management of Roxbury restarted the company as a mining contractor and has been operating in that field since that time.

Roxbury is presently managing two mining contracts, one at Daisy Milano Gold Mine in WA. Roxbury is mining 3000 tonnes of ore per month in an operation using both shaft and decline access and is sinking a shaft at Southern Cross for a private consortium.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Paul Cochrane Project manager, Roxbury Mining Contractors Tel: (03) 5475 2977

SCIENTISTS SLICE INTO OUR CRUST Roxbury moves towards mining the proposed Eaglehawk open pit. If Roxbury continues after 120 days, Alliance will receive a $200,000 deposit and monthly payments until the option is exercised. General manager of Roxbury Mining Contractors, Jim Barr, said that, provided the appropriate permits were obtained, the Maldon operation could quickly employ 15 people in the mining and processing operation. Ultimately, if the underground operation went ahead, up to 45 people could be employed at the mine. The full purchase price is $800,000 and includes the fully operational, 450,000 tonne capacity gold processing plant at Porcupine Flat. At settlement, Alliance's rehabilitation bonds of $265,000 would be replaced by Roxbury. CKG and Roxbury plan to create a joint venture for the underground in mining of the Nuggetty reef. The decline is planned to provide access to the reef with the ore mined to be processed in the nearby Porcupine Flat CIL plant. Under the joint venture terms, CKG will contribute $500,000 to provide working capital to 26

The 450,000 tonnes-a-year gold processing mill at Maldon could have a new lease of life if the plans of Roxbury Mining Contractors come to fruition. The group wants to re-open both open pit and underground mining at Maldon to utilise gold ore resources left by earlier miners.

the joint venture in staged payments. CKG will also issue 200,000 fully paid ordinary shares to Roxbury in consideration for the exclusive rights during the company's due diligence investigations. The Maldon district is one of Victoria’s most productive gold mining areas, producing more than 2 million ounces over an 80 year period from around 1855. Roxbury Mining Contractors was established in 1987. It is an Australian company providing specialist contract underground mining services for a wide range of clients in Western Australia, Tasmania and Victoria.

unique geological investigation across a slice of northern Victoria will give geologists and scientists a new insight into the rocks and history of the state, and possibly provide new clues about where to find major new mineral deposits.

A

The northern Victorian geotraverse has been proposed as an integrated scientific project to understand the crust that underlies northern Victoria. Under the guidance of the CSIRO, the project aims to bring together several scientific groups with research activities in the area to provide benefits for a range of parties with interests in land use. A proposed seismic line across northern Victoria will tie the individual projects together and provide valuable data to a range of disciplines.

Mr Barr said it was his group’s strong mining and operational background which gave Roxbury and CKG an advantage over other former mine operators at Maldon.

Work along the geotraverse is currently focussed on the western and central regions: The goldfields sector from Stawell to Bendigo follows the northern margin of outcrop of the highly gold-mineralized Stawell and Ballarat geological zones.

As well as providing mining services, Roxbury also owns a fully operational CIP Plant located at Coolgardie WA.

To the immediate south lies one of the world’s great gold provinces with ten million-ounceplus goldfields while to the north is the

Murray Basin and the younger sediments that cover the extension of this province and prevented the early prospectors from knowing what lay beneath. The Strathbogie sector, from Bendigo to Benalla abuts the prime agricultural land of the Goulburn Valley. The area suffers serious salinity degradation and a thorough understanding of its hydrogeology is essential to future development. It is also the site of the Violet Town TEMPEST survey, one of the first surveys within the National Salinity Program.

Exploration CRC have expressed their strong support for a broad, large-scale, integrated research project to address some fundamental aspects of Victorian geology and land management. A workshop at Benalla in April will bring together parties interested in collaborative research along the northern Victorian geotraverse, provide the forum to summarize existing knowledge and the impetus to work towards support for a seismic line and its associated research.

Because of its geological genesis, this sector also holds one key to the formation of major gold provinces, although the area itself is less gold-mineralized than the goldfields sector. The Strathbogie sector preserves clear evidence of the most violent and eruptive period of Victoria’s geological history during which time there were a series of highly explosive volcanoes and accompanying igneous activity as deep as 100 km below the surface. Importantly, this igneous activity records the processes that occurred in the Victorian Gold Province.

The proposed format is a three-day program of morning lectures and afternoon field trips, commencing on Tuesday, April 30.

Several organisations including the Australian Geological Survey Organisation, Geological Survey of Victoria, Predictive Mineral Discoveries CRC, Victorian universities and he Landscape Evolution and Mineral

Professor Neil Phillips - CSIRO Tel: (03) 96627420 Dr Ken Lawrie - CRC LEME Tel: (03) 62499847

27

Two field trips will be run incorporating various aspects of geology, geophysics, hydrogeology and salinity in the Benalla district and both will emphasise the integration of diverse fields of geoscience.

F O R M O R E I N F O R M AT I O N C O N TA C T:

GOLD EXPLORATION

GOLD EXPLORATION

The mill, at Porcupine Flat, just outside Maldon, has remained on care and maintenance since Alliance Gold Mines closed the Union Hill open pit in 1997.

Maldon searches old for new estern Australian mining groups, Central Kalgoorlie Goldmines Ltd and Roxbury Mining Contractors Pty Ltd have formed a 50-50 joint venture to mine and process ore from the Nuggetty Reef at Maldon in central Victoria.

Between 1987 and 1995, Roxbury completed underground mining projects for Amalg Resources at Spargos Reward Gold Mine, 1A Nickel Mine in WA, Wheel Hughes in SA and Lady Eloise Mine in Queensland.

W

In 1995 Roxbury sold all existing contracts and equipment to Henry Walker Mining Contractors.

The two companies plan to re-open the old goldfield, last worked by Alliance Gold Mines in 1997, via a decline of approximately 150 metres.

As part of the sale agreement, the outgoing owner of Roxbury agreed not to operate in the contract mining field for a period of three years.

The Nuggetty Reef lies at the Northern end of the Maldon goldfield, close to the granite contact and has produced more than 300,000 ounces of gold from 50,000 tonnes of ore. Much of this production was from surface enriched ore but rich grades, in excess of 10 ounces per tonne, were reported from ore from the primary zone. Now the new operators want to open a second open pit to the south of the existing Union Hill pit while Central Kalgoorlie Goldmines are keen to construct a decline into the known Nuggetty North resource which lies to the north of the Union Hill pit. Much of the new gold resource has been determined from earlier exploration work by previous owners of the Maldon mine. In 1997 Alliance Gold Mines NL completed a drilling program targetting a zone to the south of the original Nuggetty workings. Nuggetty Reef was intersected in all holes showing continuity over at least 120 metres of strike and 100 metres vertically with eight of the 14 diamond drill holes reporting significant gold grades including three with visible gold. The best intersections' reported by Alliance from the drilling program included: 0.8metres at 80 g/t Au in DDH 62, 2.7m at 42 g/t Au (including 0.35m at 188 g/t Au) in DDH 57W1, 0.6m at 15.2 g/t Au in DDH 60 and 0.7m at 6.4g/t Au in DDH6l Wl. Previous drilling by other companies suggested that the reef, with several high-grade gold intersections (including 1.0m at 45.5 g/t Au) extended for at least a further 270 metres to the south. In September 2001 Roxbury entered into an option agreement with Alliance for the sale of its Maldon Gold Project to Roxbury. Under the terms of this option, Roxbury will meet all of Alliance's project costs while

In late 1998, the former senior management of Roxbury restarted the company as a mining contractor and has been operating in that field since that time.

Roxbury is presently managing two mining contracts, one at Daisy Milano Gold Mine in WA. Roxbury is mining 3000 tonnes of ore per month in an operation using both shaft and decline access and is sinking a shaft at Southern Cross for a private consortium.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Paul Cochrane Project manager, Roxbury Mining Contractors Tel: (03) 5475 2977

SCIENTISTS SLICE INTO OUR CRUST Roxbury moves towards mining the proposed Eaglehawk open pit. If Roxbury continues after 120 days, Alliance will receive a $200,000 deposit and monthly payments until the option is exercised. General manager of Roxbury Mining Contractors, Jim Barr, said that, provided the appropriate permits were obtained, the Maldon operation could quickly employ 15 people in the mining and processing operation. Ultimately, if the underground operation went ahead, up to 45 people could be employed at the mine. The full purchase price is $800,000 and includes the fully operational, 450,000 tonne capacity gold processing plant at Porcupine Flat. At settlement, Alliance's rehabilitation bonds of $265,000 would be replaced by Roxbury. CKG and Roxbury plan to create a joint venture for the underground in mining of the Nuggetty reef. The decline is planned to provide access to the reef with the ore mined to be processed in the nearby Porcupine Flat CIL plant. Under the joint venture terms, CKG will contribute $500,000 to provide working capital to 26

The 450,000 tonnes-a-year gold processing mill at Maldon could have a new lease of life if the plans of Roxbury Mining Contractors come to fruition. The group wants to re-open both open pit and underground mining at Maldon to utilise gold ore resources left by earlier miners.

the joint venture in staged payments. CKG will also issue 200,000 fully paid ordinary shares to Roxbury in consideration for the exclusive rights during the company's due diligence investigations. The Maldon district is one of Victoria’s most productive gold mining areas, producing more than 2 million ounces over an 80 year period from around 1855. Roxbury Mining Contractors was established in 1987. It is an Australian company providing specialist contract underground mining services for a wide range of clients in Western Australia, Tasmania and Victoria.

unique geological investigation across a slice of northern Victoria will give geologists and scientists a new insight into the rocks and history of the state, and possibly provide new clues about where to find major new mineral deposits.

A

The northern Victorian geotraverse has been proposed as an integrated scientific project to understand the crust that underlies northern Victoria. Under the guidance of the CSIRO, the project aims to bring together several scientific groups with research activities in the area to provide benefits for a range of parties with interests in land use. A proposed seismic line across northern Victoria will tie the individual projects together and provide valuable data to a range of disciplines.

Mr Barr said it was his group’s strong mining and operational background which gave Roxbury and CKG an advantage over other former mine operators at Maldon.

Work along the geotraverse is currently focussed on the western and central regions: The goldfields sector from Stawell to Bendigo follows the northern margin of outcrop of the highly gold-mineralized Stawell and Ballarat geological zones.

As well as providing mining services, Roxbury also owns a fully operational CIP Plant located at Coolgardie WA.

To the immediate south lies one of the world’s great gold provinces with ten million-ounceplus goldfields while to the north is the

Murray Basin and the younger sediments that cover the extension of this province and prevented the early prospectors from knowing what lay beneath. The Strathbogie sector, from Bendigo to Benalla abuts the prime agricultural land of the Goulburn Valley. The area suffers serious salinity degradation and a thorough understanding of its hydrogeology is essential to future development. It is also the site of the Violet Town TEMPEST survey, one of the first surveys within the National Salinity Program.

Exploration CRC have expressed their strong support for a broad, large-scale, integrated research project to address some fundamental aspects of Victorian geology and land management. A workshop at Benalla in April will bring together parties interested in collaborative research along the northern Victorian geotraverse, provide the forum to summarize existing knowledge and the impetus to work towards support for a seismic line and its associated research.

Because of its geological genesis, this sector also holds one key to the formation of major gold provinces, although the area itself is less gold-mineralized than the goldfields sector. The Strathbogie sector preserves clear evidence of the most violent and eruptive period of Victoria’s geological history during which time there were a series of highly explosive volcanoes and accompanying igneous activity as deep as 100 km below the surface. Importantly, this igneous activity records the processes that occurred in the Victorian Gold Province.

The proposed format is a three-day program of morning lectures and afternoon field trips, commencing on Tuesday, April 30.

Several organisations including the Australian Geological Survey Organisation, Geological Survey of Victoria, Predictive Mineral Discoveries CRC, Victorian universities and he Landscape Evolution and Mineral

Professor Neil Phillips - CSIRO Tel: (03) 96627420 Dr Ken Lawrie - CRC LEME Tel: (03) 62499847

27

Two field trips will be run incorporating various aspects of geology, geophysics, hydrogeology and salinity in the Benalla district and both will emphasise the integration of diverse fields of geoscience.

F O R M O R E I N F O R M AT I O N C O N TA C T:

Magnesium plant study underway consortium of three major companies has begun a pre-feasibility study into construction of an $800 million magnesium production plant in Victoria’s Latrobe Valley.

A

The project would use waste material from the Hazelwood power station as its major feedstock. Pushing the project is the rising global demand for magnesium metal, principally from the automotive industry, which is continually seeking lighter and stronger metals to improve performance and reduce fuel consumption. Industry experts say this growing demand will lead to at least two major new magnesium projects being developed in Australia in the next five years. Members of the Latrobe Valley consortium are West Australian mining group Rambora Technologies Ltd, Hazelwood Power and Magnesium Investments Pty Ltd. Rambora Technologies plans to spend $1 million over the next six months to complete the study, earning the company a 15 per cent interest in the project. On completion of the prefeasibility stage, Rambora may exercise an option to purchase the remaining 85 per cent by the issue of approximately 196 million of its shares to Magnesium Investments Pty Ltd.

Magnesium Investments is a private company whose owners have more than 25 years experience in the magnesium industry, while Hazelwood Power is principally owned by International Power of the UK. The partners have commenced discussions with the Victorian Government about the project, which involves the extraction and production of magnesium metal from the brown coal fly ash produced from power generation in the Latrobe Valley. The first deposit to be investigated is located adjacent to the Hazelwood power station.

The ash from the brown coal of the Latrobe Valley is unique, containing significant magnesium levels, which may prove to be commercially viable. If the project proceeds, it involves combining the current ash with the ash contained in the tailings dams of the power stations, with 100,000 tonnes of magnesium metal expected to be produced at Hazelwood each year for a minimum of 20 years. Recent studies conducted by HRL Technology have verified the economic advantages derived from extracting magnesium from the Latrobe Valley ash. Initial magnesium extraction tests used a standard acid leach process, followed by purification of the magnesium chloride solution. That process would be followed by standard electrolysis, utilising established Alcan cell technology to produce magnesium metal. The project’s assets will include: • ash in Hazelwood's tailing ponds; • ash to be produced at the Hazelwood power station in the future; • leased land adjacent to the Hazelwood power station; • the existing tailings system facilities at Hazelwood; and • the supply of electricity at a cost, which reflects the benefit of being located adjacent to the Hazelwood power station. 28

The Hazelwood tailings ponds are currently estimated to contain more than five million tonnes of ash, with initial indications showing magnesium content of between eight and 12 per cent. The power station produces approximately 200,000 tonnes of ash annually. The pre-feasibility stage involves confirming existing data, the quality of the existing ash resource, evaluating the current and future ash chemistry, evaluating the alternative process options and refining the capital and operating costs subject to further bankable studies. This work is expected to take six months to complete. An initial review undertaken by Magnesium Investments Pty Ltd has estimated the capital cost of a 100,000 tonne plant will be about $800 million, a significantly lower cost than other proposed magnesium projects in Australia and overseas. The major cost advantages of this project include a low resource cost and no mining costs to access the magnesium resource.

F O R M O R E I N F O R M AT I O N C O N TA C T:

David Paterson - Magnesium Investments Tel: 0416 102 425 Rodney Foster- Rambora Technologies Tel: 0417 343 111

NEW FROM THE GEOLOGICAL SURVEY OF VICTORIA

INDUSTRY DEVELOPMENT

The latest publication from the GSV on the Tasman Fold Belt System in Victoria combines the latest survey technology with contemporary thinking on Victoria’s geological development. The result is the most comprehensive geological picture of the State since the pioneering geological mapping of Alfred Selwyn in the 1850’s. The book costs $110 plus $10 p&p . The text of the book together with raster images is included on a CD-ROM . To order contact Minerals and Petroleum Business Centre, Level 8 , 240 Victoria Parade, East Melbourne , Victoria 3002. Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected]

Magnesium plant study underway consortium of three major companies has begun a pre-feasibility study into construction of an $800 million magnesium production plant in Victoria’s Latrobe Valley.

A

The project would use waste material from the Hazelwood power station as its major feedstock. Pushing the project is the rising global demand for magnesium metal, principally from the automotive industry, which is continually seeking lighter and stronger metals to improve performance and reduce fuel consumption. Industry experts say this growing demand will lead to at least two major new magnesium projects being developed in Australia in the next five years. Members of the Latrobe Valley consortium are West Australian mining group Rambora Technologies Ltd, Hazelwood Power and Magnesium Investments Pty Ltd. Rambora Technologies plans to spend $1 million over the next six months to complete the study, earning the company a 15 per cent interest in the project. On completion of the prefeasibility stage, Rambora may exercise an option to purchase the remaining 85 per cent by the issue of approximately 196 million of its shares to Magnesium Investments Pty Ltd.

Magnesium Investments is a private company whose owners have more than 25 years experience in the magnesium industry, while Hazelwood Power is principally owned by International Power of the UK. The partners have commenced discussions with the Victorian Government about the project, which involves the extraction and production of magnesium metal from the brown coal fly ash produced from power generation in the Latrobe Valley. The first deposit to be investigated is located adjacent to the Hazelwood power station.

The ash from the brown coal of the Latrobe Valley is unique, containing significant magnesium levels, which may prove to be commercially viable. If the project proceeds, it involves combining the current ash with the ash contained in the tailings dams of the power stations, with 100,000 tonnes of magnesium metal expected to be produced at Hazelwood each year for a minimum of 20 years. Recent studies conducted by HRL Technology have verified the economic advantages derived from extracting magnesium from the Latrobe Valley ash. Initial magnesium extraction tests used a standard acid leach process, followed by purification of the magnesium chloride solution. That process would be followed by standard electrolysis, utilising established Alcan cell technology to produce magnesium metal. The project’s assets will include: • ash in Hazelwood's tailing ponds; • ash to be produced at the Hazelwood power station in the future; • leased land adjacent to the Hazelwood power station; • the existing tailings system facilities at Hazelwood; and • the supply of electricity at a cost, which reflects the benefit of being located adjacent to the Hazelwood power station. 28

The Hazelwood tailings ponds are currently estimated to contain more than five million tonnes of ash, with initial indications showing magnesium content of between eight and 12 per cent. The power station produces approximately 200,000 tonnes of ash annually. The pre-feasibility stage involves confirming existing data, the quality of the existing ash resource, evaluating the current and future ash chemistry, evaluating the alternative process options and refining the capital and operating costs subject to further bankable studies. This work is expected to take six months to complete. An initial review undertaken by Magnesium Investments Pty Ltd has estimated the capital cost of a 100,000 tonne plant will be about $800 million, a significantly lower cost than other proposed magnesium projects in Australia and overseas. The major cost advantages of this project include a low resource cost and no mining costs to access the magnesium resource.

F O R M O R E I N F O R M AT I O N C O N TA C T:

David Paterson - Magnesium Investments Tel: 0416 102 425 Rodney Foster- Rambora Technologies Tel: 0417 343 111

NEW FROM THE GEOLOGICAL SURVEY OF VICTORIA

INDUSTRY DEVELOPMENT

The latest publication from the GSV on the Tasman Fold Belt System in Victoria combines the latest survey technology with contemporary thinking on Victoria’s geological development. The result is the most comprehensive geological picture of the State since the pioneering geological mapping of Alfred Selwyn in the 1850’s. The book costs $110 plus $10 p&p . The text of the book together with raster images is included on a CD-ROM . To order contact Minerals and Petroleum Business Centre, Level 8 , 240 Victoria Parade, East Melbourne , Victoria 3002. Tel (03) 9412 5020. Fax (03) 9412 5157. Email: [email protected]

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