SA operating mines to jump 45 per cent this year: PIRSA

That figure represents a 45 per cent leap in the number of the State’s operating mines, Dr Heithersay told an industry conference on May 3rd.
He said that, despite the slowdown attributed to the Global Financial Crisis, mineral production reached A$3.1 billion in SA last year – representing a threefold increase since 2004.
“We are proposing that a target of $10 billion in mineral production is achievable by 2020,” Dr Heithersay said.
“These figures demonstrate just how resilient this State has become to any negative effects of the global economic climate.”
Dr Heithersay said he was confident that South Australia would have 16 operating mines by the end of this year – up from the 11 currently in production.
He listed the five new mines-to-be as: Heathgate Resources’ Beverley North (uranium), IronClad Mining’s Wilcherry Hill (iron), IMX Resources’ Cairn Hill (iron), Western Plains Resources’ Peculiar Knob (iron), and Hillgrove Resources’ Kanmantoo (copper).
“These five operations all intend to be in production or construction by the end of this year,” Dr Heithersay said.
The PIRSA head also paid tribute to two new mines as “2010 standouts”, in the shape of OZ Minerals’ Prominent Hill copper-gold mine near Coober Pedy and Iluka Resources’ Jacinth/Ambrosia heavy minerals mine in far west SA.
Dr Heithersay earmarked three emerging projects as “ones to watch” in the short term: Rex Minerals’ Hillside copper-gold project on the Yorke Peninsula; UraniumSA’s fast growing Mullaquana uranium discovery near Whyalla; and the Carrapateena copper-gold discovery co-owned by RMG Services and Teck Australia.
“I am very confident that, based on the latest developments, we will have our 16 mines moving forwards by the end of this year,” said Dr Heithersay.

Prospects bright, says OZ Minerals
At the same industry conference, OZ Minerals boss Terry Burgess had a positive outlook for the company’s Prominent Hill mine.
Strong demand for copper in the world’s fastest growing economies, coupled with limited global supplies, will continue to ensure a bright future for copper and the $1.2 billion mine, Burgess said.
“Copper has extremely good fundamentals going forward,” Burgess told delegates.
“Demand from China for infrastructure, electrical and plumbing uses is very high and, with only 19 per cent of the country’s copper produced internally, it will continue to remain dependent on imports from the rest of the world,” he said.
“If the copper price went to $4 a pound tomorrow, I don’t think you would see an increase in supply. Everyone around the world is producing as much copper as they can. We think copper’s at maximum production and we see continuing pressure on the supply side.
“While many commodities like zinc and uranium need large tonnages to deliver profitability, copper is not one of them. Copper also has very few substitutes, unlike say, nickel.”
Burgess said that many of the major planned new copper projects around the world were in politically or socially challenging environments, or would involve deep mining.
“Today more than 70 per cent of projects are in low risk domains, but going forward we are going to have domains that are less favourable if we are going to maintain the same levels of production,” he said.
“If you look at some of the transactions of the past six months, the view now is that the long-term copper price is going to creep up. I would be surprised if we see the price under $2 a pound in the long term.”
OZ Minerals has set annual production guidance of 100-110,000 tonnes of copper from Prominent Hill over the next three years – as well as 110-120,000 ounces of gold, a figure that it increased by 30,000 ounces last month.