SOUTH AUSTRALIA TRANSPORT

CONFERENCE

6 June 2012

Infrastructure - The key to unlocking

South Australia’s mineral wealth

Joe Mastrangelo, Director

Resources & Energy Sector Infrastructure Council

Twenty major mines

Exploration, $313m pa

Employment, 10 200

people

Export Revenues, 38%

A$4.2 bn+

Over 30 minerals and

energy projects

April 2012…

Olympic Dam Expansion – Key

Elements

5

Source: BHPB EIS

Open pit mine, processing plant and

associated infrastructure

• 270 km electricity transmission line,

and/or 400 km gas pipeline, for up to

600 MW gas-fired power station.

• 250 MW on-site cogen power station.

• 280 ML/d desal plant at Pt Bonython,

320km water pipeline.

• 105 km railway from Pimba to OD.

• Sea landing facility 10 km south of Pt

Augusta.

• Airport with 737 jet capability.

• Up to 10,000 person workers’ camp.

• Expanded Roxby Downs Township.

• Upgraded Adelaide & Darwin

harbours.

Olympic Dam Expansion –

Parameters

6

Element Current Operation Post-Expansion Operation

Mine Production

(per annum)

Ore 12m tonnes

Concentrate 600,000 tonnes

Copper 235,000 tonnes

Uranium 4,500 tonnes

Gold 100,000 ounces

Ore 72m tonnes

Concentrate 2.4 m tonnes

Copper 730,000 tonnes

Uranium 19,000 tonnes

Gold 800,000 ounces

Water GAB 37 ML/d

(permitted to 42ML/d)

GAB up to 42 ML/d

Desalination Plant ~200 ML/d

Energy Grid 125 MW Grid & on-site power 775 MW

or combination

Transport in/out pa Road 1 m tonnes

(12,000 truck movements)

Road 4.8 m tonnes

(24,000 truck movements)

Rail (after Yr 6) 42 per week

Source: BHPB EIS

Industry

Associations

Jason Kuchel

SA Chamber of Mines & Energy

John Roberts

SA Chamber of Mines & Energy

Private Sector

Tino Guglielmo

Ambassador Oil & Gas

Jim White

Centrex Metals

Dean Dalla Valle

BHP Billiton

Merrill Gray

Syngas

Lewis Owens

Chair, Water SA

Public Sector

Paul Heithersay

DMITRE

Rod Hook

DPTI

Lance Worrall

DMITRE

Bruce Carter

Partner Ferrier Hodgson

Chair, Major Proposal Review Cabinet Committee

Minister for Transport & Infrastructure

Hon Patrick Conlon MP

Joe

MastrangeloDirector

Sue CzerniakSenior Project

Officer/Secretariat

Minister for Mineral Resources

and Energy

Hon Tom Koutsantonis MP

Hans Umlauff

Chair

Study Overview

83 R&E companies invited to participate

32 responded – 42 ‘unweighted’ projects ($59B)

37 of the 42 projects located in three distinct

regions

Upper North

Yorke Peninsula / Braemar Province

Eyre Peninsula

24 ‘weighted’ projects further analysed ($35B)

Study focus on - three regions and weighted

projects

Braemar Alliance Estimates:•Power and Transmission $2.25B

•Desalination $0.5B

•Slurry pipes 25mtpa $0.65B

•Rail expansion 25mtpa & 380km $0.750B

•Locomotive s & wagons 9 train sets $0.55B

•Port (200,000 DWT 50mtpa) $0.75B

•Pellet Plant 10mtpa $1.25B

•Total investment approx $6.65B

Various Potential Export Paths

Proposed Conveyor

Rail

Shedding

3 km jetty

Enclosed Conveyor

Port Bonython

3 KmFacility – 4 000t/hr

Maximum Capacity – 25 Mtpa tonne per annum

Jetty Construction – 250 t cantilever travellerCost - $700M

Port Lincoln

Thevenard

Port Pirie

Outer Harbour

Outer Harbour

Port Pirie

Summary of Demands

Additional 600MW of power by 2014 peaking

1200MW by 2017

170 GL water

(significant proportion through desalination

infrastructure)

Ports, road and rail infrastructure export a total

120mtpa post 2017

400ML diesel per annum from 2014

200TJ gas per day post 2014

Significant increase in regional airport use

PORT

Road

Rail

Air

Resources and Energy

Infrastructure Demand Study

& Recommendations

5 Recommendations

Recommendation #1

Infrastructure

corridors/

utility hubs

That the SA

Government facilitate

the development of

infrastructure corridors

and utility hubs through

a master planning

process, to identify and

clarify the associated

infrastructure planning

policy, regulatory and

commercial issues

associated with the

corridors and utility hubs

identified through the

Infrastructure Demand

Study (IDS)

Recommendation# 2

Development of deep

sea ports/rail and road

logistics

That the SA Government

facilitate the development

of three new deep sea

ports that are able to be

served by appropriate rail

and road infrastructure,

sufficient to support the

future development of

minerals and energy

projects in South

Australia

Recommendation #3

Electricity Infrastructure

Eyre Peninsula

That a nominated case

manager be appointed to

work with local mineral

resource companies, with

Australian Energy

Regulator (AEG) and with

ElectraNet, to assist in

accelerating (ahead of

the current 2018 AEG

statutory approval) 275

kV augmentation on Eyre

Peninsula by the end of

2016, or earlier if this

timeframe is appropriate

to meet mining industry

needs.

Recommendation #4

Water Resources

That the Department for

Water (DFW) undertake

detailed mapping to

identify ground water

resources and potential

extractable volumes at

key identified areas in

South Australia.

As a priority the key

area of the Eyre

Peninsula, is to be

finalised by December

2012. This is crucial to

allow identification of

sustainable water

supply solutions for

future resources

projects in the region.

Recommendation #5

Investment in

Resources

Infrastructure

That the Department for

Manufacturing,

Innovation, Trade,

Resources and Energy

(DMITRE) work with

geographically grouped

resources and energy

project proponents to:

assist with making

companies’ infrastructure

projects investor-ready;

assist in packaging

investment ready information

for prospective investors; and

assist in connecting

investment ready packages

and resources and energy

project proponents with likely

infrastructure investors.

Consultation

Opportunity for industry and community feedback

Emerging themes:

Water source (desalination and groundwater) and management

Energy supply (transmission) management

Multi-use facilities for ports

Shared / accessible infrastructure

Endorsement of master planning process

Greater community involvement

Need for Government leadership and provision of seed funding

Conservation and land management

Infrastructure Channel

Incorporated into DMITRE’s SA

Resource Information Geoserver –

SARIG

Infrastructure Audit

SA’s current infrastructure

environment for electricity, transport

(road, rail, ports), water, gas and air

Over 100 attributes received

Publicly available data is maintained

on a regular basis

17 new layers in Stage 1

7 more by end Stage 2 (June 2012)

Infrastructure Channel

Thank You