Western Australia Minister for Mines and Petroleum Norman Moore

Minister announces latest round of Royalties for Regions funding for exploration

Victor P Taffa

Western Australia Minister for Mines and Petroleum Norman Moore today encouraged mineral exploration companies to apply for a share in more than $5 Million of State Government funding.

His call came as part of the second round of funding for the co-funded exploration drilling program. The program is the centrepiece of a five-year, $80 Million Exploration Incentive Scheme (EIS) funded through the Liberal-National Government’s Royalties for Regions program.

Mr Moore said the Government’s support for exploration drilling in under-explored areas of WA had already increased knowledge of the State’s geology and helped identify potentially valuable mineral deposits.

“The second round of funding is available for drilling projects planned for 2010-11.” Mr. Moore said.

“The first round was very competitive, attracting 168 applicants which resulted in 35 projects successfully gaining support from the $3 Million in available funding.”

“Results from some of the co-funded drilling projects have shown early indications of potential commercial success, as well as returning quality core from underexplored areas of WA.”

“The exploration drilling program boosts new resource discoveries and helps identify tomorrow’s mines today.”

“It preferentially funds projects that promote new mineral and energy targets, and innovative exploration concepts and technologies. It also encourages industry to drill in areas that have mineral, petroleum or geothermal potential and is ultimately aimed at helping to identify new opportunities.”

The Minister said the program illustrated the Government’s support for business and regional and remote communities to take advantage of the current economic resurgence led by the resources sector.

An expanded resource sector would generate more jobs and more funding to invest into health, law and order and education for the community.

The Co-funded Drilling Program would provide up to 50 % of direct drilling costs with three different caps based on the types of applications.

General multi-hole applications were capped at $150,000 while a single deep-hole project could attract up to $200,000 of funding.

A special category was available to genuine prospectors with funding capped at $20,000 per project. This funding would also support geochemical analyses based on the drilling.

Applications must be lodged with the Department of Mines and Petroleum (DMP) by 5pm on March 19. To make a submission, go online at: http://www.dmp.wa.gov.au/EISdrilling or phone Margaret Ellis at DPM on 9222 3509.

Western Australia Premier Colin Barnett

Western Australia Minister for Mines Norman Moore

Australia’s ‘biggest’ gold mine to contribute 20 million ounces to economy

Victor P Taffa

A huge boost in employment and a cash injection would help Boddington and surrounding towns become a significant mining centre with today’s official opening of Newmont Mining Corporation’s gold mine.

Western Australia Premier Colin Barnett said the $3.5 Billion recommissioned gold mine, 130km South of Perth, heralded a new era of gold mining in Western Australia.

“The Boddington mine is expected to surpass the Kalgoorlie-Boulder Super Pit in terms of size and production in coming years. It should employ a production workforce of up to 900 employees and create many opportunities for suppliers and contractors,” Mr Barnett said.

“I congratulate Newmont on its buy local hire local policy and providing the local Ngaala Karla Booja people business, employment, education and training opportunities.”

The Newmont mine was expected to inject $770 Million into the economy every year for the next 20 years.

“Western Australia has always been about big projects, international trade and bold steps forward,” the Premier said.

“As a result, WA has secured its position as the world’s leading mining economy. It’s important that through this success we continue to improve conditions for the community and increase job opportunities.”

Western Australia Minister for Mines and Petroleum Norman Moore said recent technological advances and the strong gold price were the drivers behind the reopening of the gold mine, which operated from 1987 to 2001.

Mining operations ceased after the known near-surface oxide ore resource had been processed. Approximately 692,000 ounces were produced.

A bedrock resource of almost 20 Million ounces was identified and expansion of the facility to allow mining and processing of basement rock was approved in 2002 with construction on the expansion project beginning in May 2006.

“This gold mine is also a stamp of approval for the direction the Liberal-National Government has taken in restoring WA’s reputation as the world’s leading resource investment destination,” Mr Moore said.

“The Newmont Gold Mine will produce about one million ounces of gold annually in the first five years before averaging about 850,000 ounces a year for its anticipated 20-year lifespan.

“This mine is the flagship project for Newmont, which is one of the world’s biggest gold producers, and has combined reserves of 20.1 Million ounces. WA is again on track to resuming its position as the international resource investment destination of choice.”

WA Minister for Mines Norman Moore

Western Australia Minister for Mines and Petroleum Norman Moore

Minister rebuts Opposition attack on mining exploration scheme

Victor P Taffa

Western Australia Minister for Mines and Petroleum Norman Moore has hit back at newspaper comments attributed to Opposition Spokeswoman Alannah MacTiernan as her comments could potentially damage Western Australia’s important but fragile, resources exploration industry.

Opposition spokeswoman Alannah MacTiernan had displayed her ignorance of the resource sector by criticising a State Government program for mining exploration.

 “Many people do not appear to understand that the issue of mining exploration is very different to the issue of mining itself,” Mr Moore said.

“Very soon after this Government came to power, two major reports indicated that business confidence in WA’s resources sector had plummeted. We had toppled from being the best to the worst performing State as an attractive business destination.

“Exploration activity in underexplored areas – the foundation of finding the mines of tomorrow which will continue to power our economy – had fallen dramatically and there was little likelihood of recovery without our Government’s intervention.”

The Minister said that under the Liberal-National Government’s Royalties for Regions-funded exploration incentive scheme (EIS), the industry had become more willing to explore WA’s undiscovered resource wealth in greenfields locations.

“There is still much to discover about the State’s geology and resources,” he said. “If we don’t find the mines of tomorrow today, there won’t be any. Ultimately, this will mean everyone suffers.

“The co-funded drilling scheme that Ms MacTiernan so obviously does not understand encourages exploration because it reduces the risk taken by individual companies even those that are relatively established and cashed-up.

“The incentive can prompt a company’s board to explore in previously unexplored, remote or Greenfield areas and to use previously untested, innovative techniques.

“It isn’t taxpayers funding companies. The community’s payoff is having the exploration results made public and improving knowledge of geology, drilling and technology.

“This in turn can lead to new mines, which means more jobs, more royalties to help pay for essential services provided to the people and a more robust economy.

“I would be very concerned if Ms MacTiernan did not understand this.”

The Opposition should understand that the mining industry employs people and plays a very big part in the economy of Western Australia.

WA Shadow Minister for Regional Development Alannah MacTiernan