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South Australia
South Australia has large deposits of coal, copper, gold, iron ore,
lead, silver, uranium, natural gas, condensate, crude oil and LPG. It has
industrial minerals such as dolomite and gypsum.
The world's largest lead zinc smelter is at Port Pirie in the State's
north-west that produces more than 200,000 tonnes of lead and 40,000 tonnes
of zinc for joint venturers Pasminco Metals and BHAS. Some of the world's largest base metal and gold deposits are to be found
in Western Mining Corporation's Olympic Dam operation, which is also one
of the world's major uranium mines. This project, that will represent 33
per cent of WMC's assets, is being expanded to produce 200 000 tonnes (approval
given for further expansion to 350 000 tonnes) of copper and 4 600 tonnes
of uranium per year. (Copper production costs are anticipated at US$0.25
per pound [total of US$0.40 per pound]).
South Australia is the nation's largest onshore oil and gas producer,
with production dominated by the Santos-operated Moomba field in the Cooper
Basin in the State's north.
Moomba produces natural gas, ethane, condensate, crude oil and LPG.
The ethane is moved by pipeline to 
See also national chemical
industry
and trade performance.
A
state by state comparison (five digit resolution available on
 | Western Australia |
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| South Australia |
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| New South Wales |
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| Queensland |
South Australia's chemical industry is confined largely to formulation activities for the local market. At Osborne, a 400 000 tpa
sodium carbonate plant has been operating since 1940.From the 1970's through to the early 1990s, the state attempted to develop a petrochemical industry based on
ethane. Since 1996, the ethane is being supplied for use by Orica at Botany in New South Wales that had been using freighted naphtha and LPG feedstocks. The contract is for 10 years providing 315 000 tonnes of ethane (say 16 petajoules) per year, see below.Given the South Australia locked out other states from accessing this feedstock for many years under a preservation act, this development may signal an end the state's three decade ambition for a petrochemical project. Projects actively promoted by the state have included;
 | chloralkali at Redcliffe in the 1970s; |
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| until 1994, ethylene glycol and MTBE at Port Bonython; and |
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| in 1994, a $1.5bn ethane cracker at Whyalla by Hoechst Australia. |
AuIron Iron production (DRI)
Also see
Direct Reduced IronA US$0.8 billion pig iron plant, called AuIron Iron
Ltd plans to produce iron direct from non-coking
(ie. cheap sub-bituminous) coal and iron ore lump or fines. It is being promoted
by Meekatharra Minerals and Ausmelt (each 47.5 per cent), two Indonesian
venturers including Krakatau Steel (5 per cent). The first stage will cost
US$500m to produce 2.5 million tonnes of pig iron per year.
It is planned to be located in the north of the state near Cooper Pedy,
using local raw materials comprising local iron ore, steaming coal (reserves
of 15bn tonnes) and limestone to produce 2.5mtpa of pig iron.
In December 1997, it was announced that the federal government's Industry
Research and Development Board will fund US$4.5bn for research that includes
the US$7m demonstration plant.
The technology is the Austmelt (Melbourne-based company) top-submerged
lance system with the coal used as a fuel and reductant. In August 2001 AuIron Energy Ltd today
announced A$5
million injection aimed at expanding its Whyalla demonstration plant to enhance coal drying and gas
off-take handling capacities. This will lead to the introduction of AuIron's Phillipson coal following
the completion of the Phase One expansion (coal drying
enhancement)...anticipated to be prior to year end. Magnesium
See The Olympic Dam site is 560 km north of Adelaide (the state capital)
represents 25 per cent of Western Mining Corporation's (WMC) worldwide
assets.
Expansion has lifted production of copper from 85 000 tonnes to 200
000 tonnes and uranium to 3500 tonnes. A second phase could lift production
of copper to 350 000 tonnes and uranium to 4000 tonnes by year 2010.
A breakdown of current and future revenue to WMC is copper 75 per cent,
uranium 20 per cent (worldwide 39 000 tonnes produced for a market of 76
000 tonnes) and precious metals 5 per cent.
Gas status Also see national gas
status. Ethane had been extracted and reinjected into the ground with reserves
at 400 petajoules (8 million tonnes) that had been increasing at between
2 and 5 petajoules per year (between 40 and 100 thousand tonnes per year).
ICI obtains 16 petajoules (310 000 tonnes) per year (including 4 petajoules
from the South West Queensland Gas Project) over a 10 year contract basis.
In other words, ICI is reducing the reserves by 13 petajoules per year
(so that over 10 years the State's reserves will have been reduced by around
one-third).
The owner Santos has reported the prices to be equivalent to the current
price for natural gas supplied to Adelaide and Sydney adjusted for crude
oil price movements (the price was estimated by one analyst at $3m per
petajoule). The agreement provides a substantial cost saving for ICI representing
some 15 years of negotiation by ICI hitherto vetoed by the South Australian
Government with ambitions for a petrochemical industry in its state.
In December 2003, a fire at Moomba promoted major production cut backs and cost
increases around Australia. It also reduces the prospects for the Exxon Mobil
sale of its 21 per cent interest in Moomba valued at A$700m and Cooper
Basin fields to the Gradav gas company.
Casualties include Orica which reduced its ammonia/ammonium nitrate production
at Koorangang Island plant at Newcastle increasing operating costs by
A$1.5million per month after tax. Orica Qenos polyethylene plant at Botany
NSW which had been using ethane and now required to use LPG as its feedstock.
Region Map
SA
Government
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AdelaideMoomba
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information about South Australia
Chemlink Pty Ltd ABN 71 007 034 022. Publications 1997.
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