Developmental Proposal: Pilbara Iron Ore Project - Case Study Example

Developmental Proposal Name Institution Course Date Developmental Proposal Introduction The major development plan for this paper is Pilbara iron ore project (PIOP), referred to as the Nammuldi mine (Validakis, 2013). The project is based in Western Australia at Pilbara region. It is near Tom Price town with a 60 km location difference on the North West part. Within the Pilbara Iron core project are Blacksmith and Anvil Apartment blocks. Blacksmith apartments block accommodates deposits of the cornerstone delta which are meant for production of flinders’ maiden. This is located among a number of proposed developments among which others are ongoing. Rio Tinto’s Caliwingina iron ore resource is located on the northern part of the project while FMG’s Solomon iron ore hub is located on the eastern region. Another project was recently approved providing a western part location from project location. This is the West Pilbara iron ore project approved by the Australian Premium Iron (API). Finally Rio Tinto’s Brockman 2 operation covers the southern part. From the blacksmith block, Anvil block is located on the South west, 10km away. The project requires operational finances in terms of capital expenditure that is estimated by Flinders to be around 1.1 billion dollars. Pilbara Iron Ore Project: Pilbara Region of Western Australia In terms of size of the project, PIOP consists of mineral resources covering an estimated area of about 917.3 with about 55% of iron. This is based on a cutoff grade of 50% of the minerals in accordance to JORC code provisions. Brockman iron deposit (BID) covers an area of about 190.5 meters with 56.3% of iron. There is also 545.5 meters of Detrital iron deposit (DID) with 55.2% of iron and a 181.3 meters covering of channel iron deposit (CID) at iron content of 54.0% (Fortescue Metals Group Ltd (FMG), 2000).). PIOP mineral resource (Project size) Cutoff at 50% Mt Fe % SiO2 % AI203 % P % LOI % Measured 101.0 56.4 10.5 5.1 0.054 2.8 Indicated 343.7 55.5 8.9 4.5 0.083 6.2 Inferred 472.6 54.7 10.2 5.0 0.067 5.7 Total 917.3 55.2 9.7 4.8 0.072 5.6 History of land development Nature and extent of urban /rural land development since settlement According to facts of archaeological findings, there have been settlements in Pilbara for about 30000 year. The settlers comprised of thirty distinct languages who managed the natural resources. Management of the natural resources and land in the early years was governed by strong spiritual relationships of people with the land. Europeans started to settle in the region in 1860s where reports were published about Northwest region of ample grounds for grazing. This led to an inflow of more Europeans bringing with them livestock and other supplies to De Gray River that were used to set up sheep stations in the region. Pastoralism was also another activity that took place in the historic Pilbara land (Flinders Mines Ltd, 2011). Nine new towns were developed as a result of the expansion in export activities. This included Newman, Tom price, South Hedland, Pannawonica, Dampier, Paraburdo and Wickham. Shay Gap and Goldsworthy are among the nine towns established during that time but were later closed. Population increase was a major change in the Pilbara land other than economic expansion. The current Pilbara covers a 507,896 km2 of land from coastline at the Northwest stretching to the Northern region. It is known for being rich in natural resources and therefore referred to as powerhouse of Australian Nation. Being among the largest regions in Western Australia, Pilbara has been in existence for over 3.4 billion years. Current settlers practice alfresco activities such as fishing, camping, and boating. Other than the rural and urban divisions of Pilbara, there is the coastal plain, arid desert areas which stretch to the dry areas of Australia. Pilbara also consists of inland ranges. Due to need for diversification, early Pilbara settlers started practicing pearl shell collection along the coastline. A wide industry at the center of the port of Cossack, however, it was transferred to Broome after a short time. Wool industries were established at the time when pearl shell industry was transferred in 1884 and fishing was also growing to bigger industries. These industries were established in urban areas (cities) such as Cossack, Roebourne, Onslow and Point Samson. This also contributed to increasing populations in urban areas and the general RFID. Population was influenced by a stimulated gold rush found by John Withnell as an opportunity. Urban areas expanded due to growing towns in the Nullagine and Marble bar as a result of the gold rush (Flinders Mines Ltd, 2011). Influence of natural and man-made environment on development Man-made and natural environment influenced the development of current PIOP. Commonwealth restrictions on iron ore exportation is among such human influences. The year 1960 marked the elimination of constraints imposed by commonwealth on export of iron ore due to the global demand of the resource, especially within Japan. China’s increased demand for iron ore and gas and the introduction of LNG projects has speed up the whole process of growth in Pilbara. The As a major contributor to Australian economy, Pilbara supplies the major proportion of minerals and petroleum products in Western Australia. It supplied 53% of the products in 2010, earning the economy 71.7 billion dollars (Validakis, 2012). The development in its proposal was also expected to cause ground disturbance on 3470 hectares of land. The mine areas was to cover 650 hectares, about 2800 hectares was expected to cover transportation corridors and about 20 hectares for installation of gas pipelines. Iron mining started in the early years. Discoveries of natural gas and oil were made in 60’s and 70’s decades from the North West regions. Growth of the resources in 1970 and 1980 decades led to development of Pilbara’s populations and economy Other than mining, other significant industries in Pilbara consist of the construction industry and export industry. Export in Pilbara is practiced through its biggest ports in Hedland and Dampier. The Pilbara Iron Ore project come into operation in 2003 from a history of iron mining in the region. This was a partnership initiative between Flinders Diamonds Limited (Flinders) and Prenti Exploration Pty Ltd (Prenti). PIOP was an initiative to develop the already existing industry and put more natural resources into use. As a result, the mining and exporting procedures earn income to the Australian economy. Strategies for mitigation/rehabilitation Reasons for construction of the Mine (PIOP) in the region Construction of the Pilbara Iron Ore project mine was influenced by a number of economical, physical and social reasons. Pilbara region has been known to contain abundant natural resources and is among the large regions in Western Australia. Due to more than 3.4 billion years of existence, fossils are believed to have accumulated for over 3.45 billion years. The Ashburton shire hosts a number of rocks considered to be the oldest in history of Pilbara and general Australia. The shire is about 60km from Tom Price town. The closeness of the area to an urban center is also a contributing factor for construction of the mine in the area. There are also national parks around the area, such as millstream-Chichester, Karijini national park and Karlamilyi national park located around Ruddell River. Although iron ore mining was being practiced, it was on small scale bases (Flinders Mines Ltd, 2011). . There was need to change the existing culture of aboriginal settlers and their disengagement in mining activities. In relation to mainstream economy, PIOP focused on converting the natural resources into economic significance to Australia and Pilbara. Flinders considered tenements that it had lesser ownership interests and left out the blacksmith, E47/882 tenement (which it had 100% ownership) in its transaction with Fortescue Metals Group (FMG). Previous land use of the site Previous land use of the land on which PIOP is established was dominated by high intensity of pastoralism. This is as a result of the people’s culture and belief of land protection activities. Land protection was attributed to spiritual relationships among people and the supernatural world. There was also crown land in the region that had remained not allocated. Most land was used for grazing activities by the settlers. The settlers also practiced minimal agricultural activities other than livestock keeping. These did not generate much income as it would through mining. The natural resource (Iron ore) was also underutilized. Appropriateness of the development to the site and area Appropriateness of PIOP in the Ashburton shire is evidenced by results reported. The PIOP has majorly boosted employment opportunities in the area. It has brought the sense of real economy that never existed among the cultural settlers. From a prefeasibility study conducted in thirteen months, the project company Flinders reported positive results in 2011. The project was viable technologically and robust on economical bases. Pilbara supplies the major proportion of minerals and petroleum products in Western Australia. It supplied 53% of the products in 2010, earning the economy 71.7 billion dollars. a coverage area of 917.3 meters squared is currently hosted by the project containing 55.2% of iron that could rather not be exploited if PIOP was not established in the region. Brockman iron deposit covers an area of 190.5 m2 comprising of 56.3% (McConnel Dowell, 2013). Conclusion PIOP was a viable project from the aspect of its location and activities. It has positively impacted both the rural and urban regions of Pilbara through its activities and development efforts. However, there has been an impact of man-made and natural environment on the development that PIOP has devised ways to mitigate. It has provided solution to the economic issues in Ashburton shire and improved participation of its settlers in development through employment. Bibliography Flinders mines, 2012, Pilbara Iron Ore Project (PIOP). Flinders mine, Retrieved on March 18, 2013 from < http://www .flindersmines.com/projects/Pilbara.aspx> McConnel D 2013, Pilbara Iron Ore infrastructure – phase A and B, Retrieved on March 19, 2013 from Validakis, V 2012, Expanding Pilbara’s iron ore: Australian mining, Retrieved on March 19, 2013 from Fortescue Metals Group Ltd (FMG) 2000, Pilbara Iron Ore Project: Conceptual Closure Plan. FMG Flinders Mines Ltd 2011, Pilbara Iron Ore Project: Blacksmith Subterranean Fauna Surveys, Bennelongia Pty Ltd. Read More