Output Group 6
MINERAL RESOURCES MANAGEMENT AND ADMINISTRATION
Mineral Resources Tasmania (MRT) provides services to the mineral exploration, mining, quarrying and mineral processing industries, for infrastructure development, and to land management groups for geohazards, construction materials and groundwater.
The primary role of MRT is to ensure that Tasmania's natural resources are managed in a sustainable way, now and for future generations, in accordance with the goals of Tasmania Together, and to ensure that there is a fair and sustainable return to the community when mineral or petroleum resources are developed.
MRT is responsible for the:
collection, integration, interpretation, publication and presentation of geoscientific information;
collection, integration, interpretation, publication and presentation of information on Tasmania's land stability and groundwater issues;
regulation of mineral and petroleum exploration in Tasmania, including offshore waters administered by the State, and the promotion of vacant areas available for onshore and offshore exploration;
setting and monitoring of standards for both the performance of exploration activities and the technical reporting of exploration records and case histories;
environmental appraisal, monitoring and management of mining heritage and land access issues; and
issue of legal titles for mining tenements, collation and recording of statistics relating to mining production, collection of fees and rentals, management of royalty regimes, and recording of mining tenements.
The major issues affecting MRT in 2002/2003 included:
Completion of the final phase (Phase Four) of Project TIGER (Tasmanian Information on Geoscientific and Exploration Resources) within the given time frame and budget;
Completion of the recommendations of the first phase of the Western Tasmanian Regional Minerals Program using funds allocated by the Commonwealth for this purpose;
Historically low levels of mineral exploration, leading to Government initiatives to stimulate the sector;
Provision of an appropriate level of resources for environmental monitoring of exploration and mining tenements, and for inspection of mines and quarries; and
Completion of the Core Library inspection facility.
How this Output Group is delivered
This Output Group is delivered by Departmental officers, in close liaison with industry bodies and other government departments.
Key clients
The major clients of this Output Group include the Minister for Economic Development, Energy and Resources, the various levels of government, the mining and mineral processing industries, and the general public.
MINING ACTIVITY
The mining industry in Tasmania again experienced difficult conditions during the year, with continuing low commodity prices. Both the Rosebery zinc and Beaconsfield gold mines continued to perform strongly, despite remaining in the hands of administrators. Capital investment at Rosebery resulted in the completion of a decline to access the orebody which will result in substantial cost savings that will further improve the economic viability of the mine.
During 2002/2003 the Renison tin mine went into voluntary administration after struggling with low tin prices for some time.
Resource drilling at Beaconsfield augmented reserves while the improved operating performance of the plant resulted in increased gold production and a stronger operating profit. Exploration of the Avebury nickel deposit by Allegiance Mining NL continued to be successful and the company has made a decision to develop a mine. A development application for the first stage of the project, the construction of a decline to access ore, has been lodged with the West Coast Council.
The major Canadian gold producer, Placer Dome Inc., took over AurionGold during the year and decided to retain ownership of the Henty mine and to continue exploration on the mining lease. Australian Bulk Minerals reported that it had signed a five year contract in July 2002 to supply BHP Billiton with 1 to 1.25 million tonnes of iron ore pellets per year. Cost savings are being achieved through the conversion of the furnaces at Port Latta from oil to natural gas and improvements in iron ore prices have further strengthened the viability of the operation. Studies are underway to extend the life of the mine beyond five years by converting to an underground operation.
The Thylacine gas discovery in permit T/30P and the Yolla gasfield are both in Tasmanian waters and are to be developed in the near future. The gas from both these fields will be piped to Victoria.
Achievements Against Strategies Identified for 2002/2003
Growth in mineral exploration activity is essential for the future development of the mineral sector and for the economic well-being of Tasmania. Mining and mineral processing accounts for over 40% of Tasmania's export capacity. MRT, by providing information on areas of high mineral and hydrocarbon resource potential in Tasmania, encourages private sector exploration which will lead to new operations coming on stream as the economic life of existing operations declines. By ensuring an adequate return from our mineral resources, all Tasmanians can share the benefits of our mineral wealth.
New Initiatives to Stimulate Mineral Exploration in Tasmania
Three-dimensional geological model of western Tasmania: The Tasmanian Government undertook to spend $300,000 to fund a study to produce a new three-dimensional geological model of western Tasmania. An integrated exploration database and a prospectivity analysis for western Tasmania are being undertaken as part of the modelling project. This project is being conducted by the Predictive Mineral Discovery Cooperative Research Centre at the University of Melbourne, with input from MRT and the CODES Special Research Centre at the University of Tasmania. The project is currently on track and is due for completion by October 2003.
Western Tasmanian Regional Minerals Program (WTRMP)
A Reference Group, with an independent chairman and members drawn from the Tasmanian Minerals Council, the Department of Industry, Science and Resources and MRT, developed a series of projects to implement the geoscience infrastructure recommendations of the Final Regional Development Plan of the Western Tasmanian Regional Minerals Program.
Projects utilising the WTRMP geophysical data to re-evaluate the geology and mineral potential of the Mount Read Volcanics and the aureoles of Devonian granites, the two most important mineralised rock associations in western Tasmania, have been partially completed. The former project has identified new exploration opportunities and has been partly responsible for attracting new exploration companies to Tasmania and two new projects, which are estimated to involve over $1.6 million of exploration in their first two years.
Three maps showing the bedrock geology in the South Darwin Peak to Hellyer, Elliott Bay to Macquarie Harbour, and Que River to Sheffield areas were completed and six maps were produced for the Devonian Granite Aureole Mineralisation Project.
As a result of remodelling of the Devonian-Carboniferous granitoids, a new 1:500 000 scale map showing the major granitoids of Tasmania was produced.
Aeromagnetic and radiometric data acquired over King Island and western and north-western Tasmania were released in October 2001 and extensive ground checking of unexplained anomalies has been completed. The data have provided a new insight into the geology of the area and form the basis for a number of value-adding sub-projects, including geophysical interpretations of the data and new geological maps of the highly prospective Mt Read Volcanics.
Helicopter-based acquisition of approximately 15 600 line kilometres of electromagnetic data over several areas of western Tasmania was completed in April 2002 and a series of interpretational products, developed in a joint project with the University of Tasmania, have been progressively released this year.
A collaborative study between MRT, Geoscience Australia and the National Centre for Petroleum Geology and Geophysics to improve the knowledge of the petroleum potential of the offshore Bass and Sorell Basins continued during the year. A set of CDs presenting the final results of this study was launched at the Australian Petroleum Production and Exploration Association conference in March 2003.
All technical documents relating to onshore and offshore exploration, and MRT technical reports, have been scanned to allow on-line viewing on the Internet and downloading for local viewing or hardcopy production. Use of the MRT website has increased steadily throughout the year, from 8 gigabytes in July 2002 to almost 50 gigabytes in June 2003.
Promotion of Mineral and Petroleum Potential
The Government provided $125,000 in 2002/2003, through the Department of Economic Development, to actively market mineral exploration opportunities in Tasmania. Activities undertaken included production of a promotional CD, and the holding of a display and presentation of a paper at the world's leading exploration forum, the Annual Meeting of the Prospectors and Developers Association of Canada (PDAC). At the Mining 2002 meeting in Brisbane in November a display highlighting the new geological compilation of the highly prospective Mt Read Volcanics belt, prepared as part of the Western Tasmanian Regional Minerals Program, was presented.
Promotional visits and functions were conducted in Perth, Sydney, Brisbane and Melbourne. These visits were led by the Deputy Premier and included Tasmanian Minerals Council and MRT representation. New information, resulting from activities during the Western Tasmanian Regional Minerals Program and the improved client access to MRT information using the TIGER information management system, was well received.
These promotions have been successful and have played a direct part in attracting three new exploration companies to Tasmania and the generation of new exploration projects with a projected total expenditure of over $2.5 million.
Four offshore petroleum areas were released for bidding in 2002/2003. These areas, in the Sorell and Otway basins off the west coast and in the Bass Basin to the north of Tasmania, were actively promoted at the Australian Petroleum Production and Exploration Association conference held in Melbourne in March 2003. Bids were received for two of these areas, with bidding for the other two areas scheduled to close in September 2003.
Collection, Integration, Interpretation, Publication and Presentation of Data
The development of the TIGER information management system was completed during the year and MRT's geoscientific information is now available on the MRT website. A single geoscience data model was developed with user interfaces for groundwater, geohazards, geophysics, drilling, mineral deposits, samples and geochemistry. This information is now available to clients using the MRT website and is in addition to the tenement and document information already released. Two staff have been employed to continue maintenance and development of this information management system.
The collection and presentation of information on Tasmania's mineral wealth and geoscientific nature continues. Ten 1:25 000 scale geological maps were prepared for digital capture. Data capture/output was completed for fifteen areas. Because priority was again given to field checking of Western Tasmanian Regional Minerals Program geophysical data, primary geoscientific data acquisition was suspended for the year. Compilation of two map sheets, on which field work had previously been finalised, was completed during the year.
Digital maps of the Great Forester River and Meander River catchment areas were produced at 1:100 000 scale for a joint project with the Department of Primary Industries, Water and Environment. The available information on groundwater in Tasmania was redesigned as part of the TIGER project and is now available to the public via MRT's internet site.
Land Use Planning Maps
Compilation of a series of maps, designed to provide information to land use planners in an easily understood format, has continued. This information will allow local government and land and infrastructure planners to make informed decisions relating to development, zoning and land use activities. The maps include information on mineral prospectivity, location of mines and quarries, location of current exploration licences and mining leases, construction material locations, and areas subject to land stability problems. Information on groundwater prospectivity is also being gathered. Forty-nine 1:100 000 scale maps, in three themes, cover Tasmania. These maps have been distributed to nineteen municipal councils under the auspices of the Partnership Agreement.
Landslip Risk Assessment
Land instability is a significant hazard in Tasmania, with many homes having been destroyed over the years while significant damage has been caused to infrastructure. By studying and understanding the landslide hazard it is often possible to minimise the effects of land instability. MRT is actively addressing this hazard in three main areas.
A regional landslide hazard assessment of the Greater Hobart area is being undertaken, drawing on a methodology that was devised in the previous year using a combination of geological, geomorphological and geotechnical information. The resultant hazard classification maps will assist councils to make informed decisions on planning issues, especially given the pressure from property developers to subdivide marginal lands.
A database has been developed to store all Tasmanian landslide information as part of Project TIGER. This database has been built to meet international standards and will be available to stakeholders via the internet. Such information can be critical during times of emergency or for long-term planning purposes.
For many years MRT has monitored several landslips in northern Tasmania that have affected roads, railways and subdivisions. A review of the survey results has been undertaken and this information will be combined with detailed maps based on recently obtained orthophotos and topographic contours. The reports to follow will allow affected stakeholders to better manage these problem features.
Revision of existing landslide advisory zoning maps of the Launceston urban region was undertaken and seven new digital maps were produced. Work commenced on a 1:500 000 scale map of Tasmania depicting areas of landslide risk.
Setting and Monitoring of Standards for Exploration Activities
MRT is responsible for ensuring that all exploration activity in Tasmania achieves the highest environmental standards and complies with the Mineral Resources Development Act 1995 and the requirements of other legislation which protects, for example, threatened species and cultural heritage. The fourth edition of the Mineral Exploration Code of Practice outlines the current requirements, the approvals process, and the controls and monitoring procedures that MRT has in place. If resources permit, a fifth edition of the Code will be produced during the coming year.
During the year 32 exploration work programs were submitted to and approved by MRT. Of these, eleven were in reserves derived from the Regional Forest Agreement (RFA) and required assessment by the Mineral Exploration Working Group.
To comply with the Regional Forest Agreement, Mineral Resources Tasmania has developed a system to spatially record exploration activity and attributes that chart the process of approval of individual work programs. All work programs, whether on Crown land, State Forest or private property, are entered on this system to give a complete record of all the environmental information relating to exploration.
The system has also been designed to provide ongoing information on the outcomes of rehabilitation of exploration activity. Compliance auditing of this system requires verification that the agreed approval process is adhered to and that derived statistics reflect the RFA and the recommendations of the Resource Planning and Development Commission. A Business Process Analysis of this system was undertaken during the year by consultants. The major recommendation was that the system should be upgraded to fully comply with the auditing requirements under the RFA and to be compatible with the new TIGER system.
Rehabilitation of Mining Lands Trust Fund
The funding to rehabilitate abandoned mines comes from an agreement with the mining and quarrying industries whereby a proportion of the royalty increase introduced in 1995 was to be allocated for rehabilitation.
In 2002/2003 major works were completed at abandoned mines in north-east Tasmania. Erosion control and revegetation works were carried out at the Endurance mine near Gladstone, while jig tailings stockpiled on the creek bank at Storys Creek were relocated to a repository where the tailings were encapsulated and revegetated. This program was jointly funded by RiverWorks Tasmania and the trust fund.
Safety work continues to be carried out at abandoned mine shafts, with a shaft at Mathinna being filled and work commencing on the capping of a shaft at the Florence mine at Zeehan.
Smaller scale works included revegetation at gravel pits near Sheffield and Beaconsfield and gorse spraying at the Queensberry mine site near Zeehan.
Special Initiative - Core Library
This project has been finalised with the completion of the inspection facility in 2002/2003.
Royalty Assessment
MRT is responsible for the collection of mineral royalties from Crown land tenements. Royalty is not a tax but a payment to the community for the purchase of the State's non-renewable resources.
The Tasmanian royalty regime operates under two systems depending on the type of resource recovered. Companies producing a metallic mineral or coal pay under a two-tiered system where royalty is paid on the net sales and profit from a mine. Royalty on the recovery of non-metallic minerals on Crown leases is set on a per cubic metre or per tonne basis.
MRT conducts a royalty audit program to ensure tenement holders are paying in accordance with the legislation. Mine and quarry inspections are also undertaken by Inspectors of Mines to determine the quantity of material taken from a tenement.
Mineral royalties totalling $4.5 million were collected during the 2002/2003 financial year. Royalty revenue for the year was significantly lower than previous financial years due to a number of factors affecting the cash flow available to Tasmanian mines. Commodity prices generally continued at very low levels for the year, with gold being an exception, while the rising value of the Australian dollar reduced revenue received for commodities priced in Australian dollars.
Centre for Ore Deposit Research, Special Research Centre (CODES-SRC)
Funding is provided under this Output for support for CODES-SRC at the University of Tasmania in conjunction with the Commonwealth Government and industry. The allocation is used to part-fund honours scholarships, and thus help increase the knowledge of Tasmanian geology, particularly in the important fields of economic geology and mineralisation. The MRT Library receives a copy of each thesis, which is available for reference use.
