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Olympic Dam Mine Expansion
Important Facts About the Olympic Dam Expansion
Olympic Dam is home to the world's largest known uranium resource, the 4th largest copper deposit and the 5th largest gold deposit.
There are 3 stages planned to the expansion:
- Stage 1: optimisation of current facilities and removing overburden.
- Stage 2: to produce 750,000 tonnes of copper and 19,000 tonnes of uranium per year.
- Stage 3: to produce 1 million tonnes of copper and about 25,000 tonnes of uranium per year.
Current production levels are approximately 200-220,000 tonnes of copper and 4,500 tonnes of uranium per year.
The Olympic Dam project has traditionally earnt 70-80% of its revenue from copper and gold; with the value of uranium as a percentage of total revenue falling since 1988 (uranium makes up less than 1% of BHPB's total annual profit).
Olympic Dam is on track to become the world's largest mine project, with an open pit which will start out 3km long, 2.8km wide and 350 metres deep to reach the ore, potentially expanding to 4.1km long, 3.5 km wide and 1 km deep (in an irregular shape) after 40 years.
BHPB claim the mine has an expected 70-100 year life, althought the EIS only talks about impacts over the next 40 years.
The mineral composition of the ore body being mined currently and that to be mined for the expanded project is different, requiring different processing, equipment and expertise.
Giant Australian Cuttlefish
BHP Billiton's business model for expansion will have an enormous impact on our State:
Greenhouse Emissions
Conservative estimate of a 5-fold increase in greenhouse pollution. The company claims it will increase up to 4.7 mega tonnes per annum of C02e - this is almost 1% of Australia's total emissions and an increase of SA's emissions by at least 10%.
Electricity
BHPB say they will need 650MW of electricity for stage 2. Current SA electricity demand is between 1,650MW (baseload) and 3,000MW (peak).
Water
Increased take from Great Artesian Basin (GAB) up to 42ML/day. 280ML/day (BHPB will take 200ML) desalination plant at Point Lowly near Whyalla (this is a big increase in the size of the plant).
Waste Rockpile
The waste rockpile (overburden) will be an enormous permanent scar on the landscape, 150 metres high and up to 8 kilometres wide. For comparison the State Bank/Santos building is only 131 metres high.
Radioactive Tailings Dam 8 billion cubic metres (5-6 billion tonnes) of tailings, world's largest tailings dam. New Facilities New airport, unloading facilities, roads, railways. How much will be paid for by taxpayers? How you can make a difference 1. Keep informed and alert BHP Billiton will release a supplementary response to the public submissions on its EIS. This is expected sometime in mid 2010. 2. Write a letter to the Editor4. Join the Greens and get involved in grass roots campaigning. 3. Ring up talkback radio, such as:
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The public comment period on the Olympic Dam Expansion EIS has now closed. Click here for Mark Parnell's submission Also for further background: · Description of the current Olympic Dam operations;
Key Issues 1. The 'China Option' & Jobs BHP Billiton (BHPB) intends to send over two thirds of the radioactive copper concentrate to China for processing. This has enormous implications for jobs and revenue for our state. How will the Rann Government react? This: "Premier Mike Rann has told BHP Billiton that the South Australian Government will strongly oppose any moves by the company to do most of the processing of minerals from the expanded Olympic Dam Mine overseas." (Media Release, Premier Mike Rann, Jul 12 2007, BHP Billiton's 'China option' is not South Australia's option). or this: "We want as much value added as possible to take place at the mine site but that is to be negotiated. One has to be realistic and constructive in negotiations," he (Kevin Foley) said. (Sunday Mail, June 1 2008, `We are realists' - hint of a compromise with BHP). The Rann Labor Government should stick to its 2007 commitment and ensure all job-rich processing of radioactive copper concentrate occurs in SA. If it doesn't, we will not only be exporting skilled jobs and income, but also any control over safety standards and safeguards, including what happens to our uranium. BHP Billiton will push the line that 'most' of the value adding will still be done in SA even with the 'China Option'. But why should we accept a business model that leaves us stuck as the world's quarry, sends our jobs overseas and slashes safety standards in order to maximise the profits of the world's largest mining company? 2. Electricity & Greenhouse Olympic Dam (OD) is already the single biggest user of electricity in the state (120 MW). BHPB say they will need to find an extra 650 MW - and their current plan is to source it from the (mostly fossil fuel) SA electricity grid or a (fossil fuel) gas plant on-site. This will be more electricity than every single household in Adelaide combined. In addition, the company will use about half a litre of diesel fuel for every tonne of rock they shift. That's over 1 million litres of diesel fuel a day. The State and Federal Governments should make BHP Billiton do much more to minimise greenhouse pollution. There is an enormous opportunity for this project to invest in new renewable energy, in particular off-grid solar thermal. This will help make SA a world leader in next generation energy and limit the increase in our state's emissions. 3. Water & Marine Impact Mines are incredibly thirsty. Olympic Dam will require an additional 216 million litres of water per day. BHPB already extracts for free about 35ML/day of ancient water from the Great Artesian Basin, and they intend to increase this to 42ML/day. Much of this will be used to dampen down dust. In addition, BHPB propose a 280ML/day (80ML planned for Upper Spencer Gulf (USG) towns) reverse osmosis desalination plant at Point Lowly, near Whyalla. This 280 ML/day plant is much bigger than the 180 ML/day plant BHP Billiton has spoken about so far. Point Lowly is also the home of an extraordinary, unique and internationally renowned annual gathering of the majestic Giant Australian Cuttlefish to breed. Cuttlefish are very susceptible to changes in salinity. Arguably, Point Lowly is the last place on the SA coast you would put a desal plant. There are alternatives. The 'Elliston Concept' is a proposal to locate a reverse osmosis desal plant at Elliston on Eyre Peninsula's west coast. Elliston has the ocean flushing that Pt Lowly lacks and enormous potential for year-round wind energy. Another alternative is solar-powered desalination, such as the Aquasol project near Port Augusta. As taxpayers are paying for a third of the desalination plant's capital cost, we should also have a big say on where it is located. It's not good enough for the State and Federal Governments to leave it to BHPB. This long-term project can afford a sustainable water solution, not just one that maximises short term private profit. 4. Waste Rock & Tailings The waste rock stockpile, consisting of approximately 44 billion tonnes removed from the world's largest open pit, will effectively create a new mountain range in the State's North. The waste rockpile (overburden) will be an enormous permanent scar on the landscape, 150 metres high and up to 8 kilometres wide. For comparison the State Bank/Santos building is only 131 metres high.
In addition to the waste rock, SA will become the home of the world's largest toxic radioactive tailings dam. The former Liberal Howard Government required the operators of the Ranger uranium mine in NT to ensure 'no environmental impacts' from their tailings for at least 10,000 years. We should demand nothing less for Olympic Dam, including a return of all tailings into the ground.
5. Royalties & Future Wealth How much of the wealth of this project will be retained by the owner of the resource, the South Australian people? According to SA Unions, SA mining royalties are less than half other mining states, with only 3.5% here compared with 7.5% in WA (for bauxite and iron ore), and 7-10% in Qld. Also, will the royalties go into general revenue, or invested for the future? A comparison to how North Sea oil revenue was used is instructive. The UK chose to spend its royalty share on current expenses, and now with the end of the resource has very little to show for it. Norway on the other hand chose to invest its share of the proceeds in a Future Fund that will provide ongoing income to the Norwegian people in perpetuity. A doubling of the SA royalty rate, with half invested in a Future Fund, would leave our State with an ongoing source of revenue when mining at Olympic Dam ends. It is quite likely taxpayers will be handing back much of the taxpayer's share to BHP Billiton, for example $79 million/year in diesel fuel rebates, and a big share ($240 million) of the cost of the desal plant.
The Greens believe... The Greens believe the Olympic Dam Expansion should only be approved if the following conditions are met:
Further Information
Greens Release their response to the EIS Govt scientist questions Pt Lowly desal science Greens initial reaction the release of the EIS Power Roxby from the Sun: Greens Roxby Rip-off - SA needs greater share of royalty wealth Greens force extended Roxby consultation BHP Billiton is expected to release a supplementary response to the public submissions on its EIS sometime in mid 2010.
· Sulphide Minerals - the pollution problem that never stops! |
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