A Division of the Department - Home | Mineral Resources

A Division of the Department of Infrastructure,Energy and Resources

Annual Review

1997/98

Mineral Resources Tasmania PO Box 56 Rosny Park Tasmania 7018

Phone: (03) 6233 8333 l Fax: (03) 6233 8338

Email: [email protected] l Internet: www.mrt.tas.gov.au

MINERAL RESOURCES TASMANIATasmania

Mineral Resources Tasmania — Mission

0 To provide the necessary information and tenement infrastructure to foster

responsible mineral resource development and land management for the benefit

of the Tasmanian community.

Mineral Resources Tasmania — Objectives

0 To increase the investment in exploration for, and development of, minerals and

petroleum in Tasmania and offshore waters;

0 To provide geoscientific information essential for the development of the State’s

mineral resources and for responsible land management;

0 To ensure a fair and sustainable return to the community when petroleum and

mineral resources are developed;

0 To give effect to government policy in relation to mineral and petroleum

resources and improve Mineral Resources Tasmania’s operational performance.

2

Mineral Resources Tasmania

3

Annual Review 1997/98

CONTENTS

Mineral Sector Overview … … … … … … … … … … … … … … … … … … … 5

Mineral Resources Tasmania … … … … … … … … … … … … … … … … … … 8

Review of MRT activities, 1997/98 … … … … … … … … … … … … … … … … 14

Metallic Minerals and Geochemistry … … … … … … … … … … … … … 14

Engineering Geology and Groundwater … … … … … … … … … … … … 16

Hydrocarbons and Tenement Management … … … … … … … … … … … 17

GIS and Geophysics … … … … … … … … … … … … … … … … … … … 21

Data Management Group … … … … … … … … … … … … … … … … … 23

Publications … … … … … … … … … … … … … … … … … … … … … … 25

Library … … … … … … … … … … … … … … … … … … … … … … … … 24

Review of Mineral Sector Operations … … … … … … … … … … … … … … … 26

Metallic minerals … … … … … … … … … … … … … … … … … … … … 28

Non-metallic minerals … … … … … … … … … … … … … … … … … … 33

Ceramics … … … … … … … … … … … … … … … … … … … … … … … 33

Construction materials … … … … … … … … … … … … … … … … … … 34

Fuel Minerals … … … … … … … … … … … … … … … … … … … … … 35

Mineral processing operations… … … … … … … … … … … … … … … … 36

Mineral Production Statistics … … … … … … … … … … … … … … … … … … 38

Annual Report, Rehabilitation of Mining Lands Trust Fund … … … … … … … 39

4


Transmissionline (220+110kV)

Major road

TASMANIA MINES,KARA

tungsten, magnetite

CIRCULAR HEADDOLOMITE, SMITHTON

dolomite

CREST RESOURCES,WEST TAKONE

magnesite

CMT,MT LYELL

copper, gold

ABM,PORT LATTA

iron ore pellets

BEACONSFIELD MINE JV,BEACONSFIELD

gold

MERRYWOOD COAL,STANHOPE

coal

COMALCO,BELL BAY

primary aluminiumalloys, paste, powder

PASMINCO HOBART,RISDON

zinc metal, alloys,cadmium, sulphuric acid

BHP-TEMCO,BELL BAY

ferromanganese,silicomanganese

sinter

GOLIATH CEMENT,RAILTONcement

GOLDFIELDS TASMANIA,HENTY

gold

RENISON BELL LTD,RENISON BELL

tin

GOLDEN TRIANGLERESOURCES,MAIN CREEK

magnesite

AUSTRALIAN BULK MINERALS,SAVAGE RIVER

iron ore

WESTERN METALSRESOURCES, HELLYERzinc, lead, copper, silver

MANCALA,HERCULES

zinc, lead, copper, silver

PASMINCO MINING,ROSEBERY

zinc, lead, gold, silver, copperCORNWALL COAL,

BLACKWOODcoal

KEY

Mineralprocessing

Mine

Advancedexplorationprospect

Railway

Sea port, airport

North

100 km0 50

146° 147° 148°

42°

41°

40°

145°144° 146° 147°

40°

148°

41°

42°

43°

Tasmania

Major Mining and Mineral

Processing Operations

TRIABUNNA

LAUNCESTON

DEVONPORT

BURNIE

WYNYARD

CURRIE

GRASSY

BELL BAY

AUSTRALIAN TITANIUMMINERALS, NARACOOPA

mineral sands

Tasmania

Mineral Resources

Tasmania

HOBART

DAVID MITCHELL TAS.,MOLE CREEK

limestone

November 1998

Mineral Sector Overview

The 1997/98 financial year was a difficult one forthe Tasmanian minerals industry, with volatileconditions experienced by the mineral exploration,mining and mineral processing sectors.

Following several years of growth, culminatingwith an annual exploration expenditure of $26 millionin 1996/97, there was a decline in mineral explorationexpenditure to $20.7 million during 1997/98. Thepreviously buoyant conditions continued into theSeptember 1997 quarter, when an expenditure of $9.7million represented 3.2% of the Australian total, thehighest proportion for more than a decade. Since thattime there has been a decline, with the June 1998quarter expenditure of $3.5 million making up only1.3% of national investment in exploration.

The decline during the year was also reflectednationally, but the Australia-wide decrease of 7% wasexceeded by the 20% decrease of expenditure inTasmania.

The main reason for the fall in expenditure was thesuccessful completion of a number of explorationprojects on mining leases. The decline in expenditureon exploration and retention licences of 5.4% was lessthan the overall national decrease, but the overall levelof expenditure on these tenements of $7.84 millionneeds to be improved to enhance the possibility ofdiscovery of economically-viable mineral deposits.

Highlights for the year included the continuationof successful exploration programs on the Roseberyand Henty mine leases, excellent progress towardsdemonstrating the viability of producing magnesiummetal from Tasmanian resources, and interestingnickel discoveries.

0 Continuing exploration by Pasminco Limitedresulted in a 14% increase in the total resources atthe Rosebery mine during the year to 11.7 milliontonnes of ore at 12.3% zinc, 4.3% lead, 0.35%copper, 139 grams per tonne silver and 2.2 gramsper tonne gold. The resources are derived from a2.3 million tonne measured resource, an indicated1.5 million tonnes and an inferred 7.9 milliontonnes.

0 RGC Limited announced the discovery of aninferred resource of 731 000 tonnes of goldmineralisation grading 7.6 grams per tonne at theMount Julia prospect, south of the Henty mine.

0 Crest Resources NL announced an indicatedresource at the Arthur River magnesite deposit of29 million tonnes of ore grading 42.8% magnesiumoxide (MgO). The company announced that itwould fast track the magnesium project aftersecuring exclusive rights to metallurgicaltechnology from a Ukrainian research institute.

0 Golden Triangle Resources NL announced aninferred resource of 47.4 million tonnes of ore with43.36% MgO at their Main Creek magnesite

deposit, including sections with mineable widthsin excess of 10 metres with grades of better than45% MgO.

0 Allegiance Mining NL discovered further lateriticnickel resources in the Andersons Creek area nearBeaconsfield, and intersected significant nickelmineralisation in a drill hole at the Aveburyprospect, west of Zeehan.

The year also marked a changing of the guard inthe Tasmanian exploration scene, with some majorcontributors to the total Tasmanian industry leavingor diminishing their activities. Rio Tinto Limitedeffectively ceased exploration in Tasmania and thecontinued involvement of Aberfoyle Limited wasuncertain because of the takeover bid by WesternMetals Resources Limited. The decision of RGCLimited to focus on mineral sands and sell its 56%stake in Goldfields Limited, as well as divest its basemetal interests including the Renison mine, added tothe uncertain climate. On the credit side,Pacific-Nevada Mining Pty Ltd was granted orapplied for 18 exploration licences covering a totalarea of 4233 square kilometres at King Island, theHunter Group, northwest Tasmania, Cape Sorell andCygnet. Work on geochemical and geophysicalsurveys on some of these areas is well underway. Inaddition, several small companies and individualswere acquiring ground for exploration, includingCobra Resources NL, Jervois Mining NL, CO Haslam,Griffith Geological Consulting Pty Ltd, AngloAustralian Resources NL, and Low Impact DiamondDrilling Specialists.

In short, the mineral exploration industry appearsto be in a phase of global contraction and Tasmania isplaced in an increasingly competitive market to attractexploration investment. The need for Government topromote the advantages of the State and to supplyhigh quality geoscientific data increased during theyear.

The mining industry was equally volatile.

The most positive development was the re-openingof the Savage River iron mine and Port Lattaprocessing plant, now operated by Australian BulkMinerals. The development of the Beaconsfield goldmine by the Beaconsfield Joint Venture, consisting of51.51% ownership by Allstate Explorations NL and49.49% by Beaconsfield Gold NL, was proceedingsatisfactorily. The Development Proposal andEnvironmental Management Plan was acceptedduring the year, a development decline reached theTasmania Reef, and a contract was let for theconstruction of the treatment mill.

The Renison mine, although achieving an

operating profit of $8.1 million for the year, before

interest, taxation and currency hedging, was on the

market and low copper and zinc prices were affecting

5


the Mount Lyell and Rosebery mines. Western Metals

Resources Limited mounted a takeover bid for

Aberfoyle Limited, operators of the Hellyer mine,

which is scheduled to cease underground mining in

mid 2000.

The environment of change was also felt in themineral processing sector, with BHP announcing thatit was looking for a potential buyer for the BHPManganese Group, which includes the TEMCO plantat Bell Bay. Most operations reported upgrades toplant and equipment resulting in improvedenvironmental performance and efficiency. Comalcoat Bell Bay successfully commissioned the mosttechnically advanced fume scrubbing system availableto the aluminium industry in September 1997,resulting in a 90% reduction in gaseous fluorideemissions and negligible particulate emissions.

At Pasminco’s Risdon zinc smelter, a majorenvironmental milestone was achieved with theintroduction of the paragoethite production process inDecember 1997, which resulted in the end of jarositedumping at sea. TEMCO completed the upgrade ofthe Number 3 furnace. The Goliath Portland CementCompany Limited at Railton completed a number ofcapital works, including installing a crusher andconveying system at its new mine site.

In April appraisal well Yolla 2 was drilled in theBass Basin, confirming volumes of between 450 and600 billion cubic feet of liquids-rich gas. A secondappraisal well is planned to confirm the economicviability of the Yolla field. The White Ibis 1 well wasdrilled in May on a prospect 40 km west of the Yollafield. This well made a sub-commercial gas discoverywhich may be tapped as part of a development of theYolla field.

6


Expenditure on Mineral Exploration

1987/88 to 1997/98

Year Australian Tasmanian Tasmania asExpenditure Expenditure % of Australian($ Million) ($ Million) Expenditure

1987/88 802.2 10.4 1.301988/89 697.6 13.1 1.881989/90 607.5 11.8 1.941990/91 601.5 9.9 1.651991/92 603.7 7.8 1.291992/93 631.7 7.8 1.231993/94 792.6 10.2 1.291994/95 893.4 14.9 1.671995/96 960.2 18.8 1.961996/97 1148.6 26.0 2.261997/98 1066.8 20.7 1.94

Source: Australian Bureau of Statistics — Actual and Expected PrivateMineral Exploration, Australia.

AU

ST

RA

LIA

NE

XP

EN

DIT

UR

E($

mill

ion)

TAS

MA

NIA

NS

HA

RE

OF

EX

PE

ND

ITU

RE

(%)1400

1200

1000

800

600

400

200

0

2.5

2

1.5

1

0.5

0

YEAR

1997

/98

1996

/97

1995

/96

1994

/95

1993

/94

1992

/93

1991

/92

1990

/91

1989

/90

1988

/89

1987

/88

1986

/87

Total Australian expenditure

Tasmanian shareData: Australian Bureau of Statistics

7


Value and production of minerals

1997/98 and 1996/97

1997/98 1996/97 %ChangeTonnes A$’000 Tonnes A$’000

Gold 3.26 - 2.44 - +47.5

Silver 139 - 166 - -16.3

Zinc 183 198 - 186 406 - -1.7

Copper 27 698 - 24 759 - +11.9

Lead 57 041 - 65 724 - -13.2

Tin 9 868 - 8 732 - +13.0

Tungsten 5 - 2 - +150.

Iron ore pellets 1 074 655 - 809 359 - +32.8

Metallic minerals - 516,367 - 460,907 +12.0

Non-metallic and fuelminerals

- 45,819 - 48,452 -5.4

Construction materials - 22,280 - 27,797 -19.8

Metallurgical productionfrom imported ores

- 649,427 - 706,686 -8.1

Value of mining and mineralprocessing sectors

- 1,233,893 - 1,243,842 -0.8

Metallurgical production

Construction materials

Non-metallic and fuel minerals

Metallic minerals

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

YEAR ENDED 30 JUNE

VALU

EO

FP

RO

DU

CT

ION

($'0

00)

1,600,000

1,400,000

1,200,000

1,000,000

600,000

400,000

200,000

0

800,000


During the 1997/98 financial year MineralResources Tasmania (MRT) operated as a Division ofTasmania Development and Resources (TDR), givingeffect to government policy in relation to minerals andpetroleum resources and providing essentialinformation for land management in Tasmania.

Following the election of a new TasmanianGovernment in September 1998, a reorganisation ofthe structure of the Tasmanian Public Service resultedin Mineral Resources Tasmania being incorporated asa division of the new Department of Infrastructure,Energy and Resources.

MRT is committed to securing a sustainable futurefor mineral exploration, mining, quarrying, andmineral processing in Tasmania, by using its resourcesto promote and encourage:

0 new mineral discoveries, following private sectorexploration of Tasmania’s areas of mineral andpetroleum prospectivity;

0 better utilisation of known resources, by new andexisting companies and other stakeholders;

0 strong community and industry support throughconsultation;

0 development and use of world-class environmentalland management systems; and

0 better land-use decisions by consideration ofrelevant geoscientific factors.

Growth in mineral exploration activity is essentialfor the future development of the mineral sector andfor the economic well being of Tasmania. Mining andmineral processing accounts for over 40 per cent ofTasmania’s export capacity. MRT, by providinginformation on areas of high mineral resourcepotential in Tasmania, encourages private sectorexploration which will lead to new operations comingon stream as the economic life of existing operationsdeclines.

By ensuring an adequate return from our mineralresources, all Tasmanians can share the benefits of ourmineral wealth.

To ensure the above, MRT’s main activities are:

0 the day-to-day administration of the MineralResources Development Act 1995 (MRDA), includingthe environmental management of exploration;

0 the provision of geoscientific information, in theform of digital data base and hard copy maps andreports, so as to attract investment from mineraland petroleum exploration companies to undertakeexploration in Tasmania for mineral andpetroleum resources;

0 the provision of information for land managementof groundwater resources, waste management andgeohazards, especially land stability; and,

0 collection of royalties, rents, fees and associatedcharges.

MRT Outputs

Under the funding structure operated by theDepartment of Treasury and Finance, MineralResources Tasmania was funded during 1997/98 toundertake five outputs:

0 Metallic Mineral Resource Investigation andPromotion Program;

0 Industrial Minerals and Hydrocarbon Investigationand Promotion Program;

0 Land Management, Environment andRehabilitation Program;

0 Digital Geoscientific Data Capture, Maintenanceand Output; and

0 Tenement Management and RoyaltyAdministration.

Achievements

Project TIGER

MRT is progressing with the creation of a flexibledigital data system that will meet Tasmania’s futurerequirements to store, maintain and distributegeoscientific data.

Phases 1, 2 and 3 of Project TIGER (TasmanianInformation on Geoscientific and ExplorationResources) are internal to MRT and aim to develop anintegrated data management system for theorganisation.

Phase 4 of Project TIGER will allow MRT, inco-operation with the Department of PrimaryIndustries, Water and Environment, to fully integrateall MRT’s land information with data from localgovernment and other State Government agencies forelectronic delivery via the Land Information SystemTasmania (LIST). This will enable the government,through the development of the LIST centraldistribution system, to provide up-to-date digital datato mineral exploration companies, all tiers ofgovernment, the private sector and the community.

During the 1997/98 financial year Project TIGERPhase 3 moved from the planning phase towardsoutput development. The following planningmilestones were achieved:

0 Completion of a Project TIGER and Project TIGERPhase 3 Business Plan;

0 Development of a Strategic Information SystemsPlan (SISP) for Project TIGER;

0 Documentation of a Project Execution Plan forProject TIGER Phase 3.

8


9


The SISP reflects the integration of the TIGER datamanagement system with the LIST. This integration isbeing supported by resource sharing between the twoprojects during development.

Phase 3 of Project TIGER has been subdivided intofive modules which are based upon the needs andactivities of business units within MRT, with workprogressing on Modules 1 and 2. Module 1 is due todeliver a document index and spatial metadata systemby January 1999. Module 2 is the redevelopment of theMRT Tenement Management System (REGIS) and isdue for completion by the end of April 1999.

National Geoscience Mapping Accord(NGMA) — ‘TASGO’ Project

The objective of the NGMA ‘TASGO’ Project,which was conducted from 1994 to 1998, was tore-evaluate Tasmania’s mineral and petroleumpotential by acquiring and interpreting newcomprehensive and diverse geological andgeophysical data sets, both onshore and offshore, inthe Tasmanian region.

The results of a number of specific programs underthe project were released as soon as possible after thedata were available and preliminary interpretationshad been undertaken.

A major workshop, Tasmania from 2D to 4D, washeld in Hobart during May 1998 at which the resultsof a number of studies were presented. Theseincluded:

0 Release of recent land seismic surveys andinterpretations;

0 Marine seismic data processed, released andpublicly presented;

0 Numerous papers on specific research topics,including:

– Geological elements of Tasmania;

– Northeast Tasmania geometry, broad structureand tectonics of seismics;

– Structural controls on gold mineralisation innortheast Tasmania;

– Northwest Tasmania geometry, broad structureand tectonics of seismics;

– Structural transect across northern Tasmania;

– Re-evaluation of the structural significance ofthe Boat Harbour Fault;

– Apatite fission track thermochronology ofTasmania;

– Tasmania’s mineral systems and mineralpotential, with comments on a pilot Pb-isotopestudy in northeast Tasmania;

– U–Pb zircon dating of Proterozoic and someearly Palaeozoic rock units in Tasmania;

– Reconnaissance isotope chemostratigraphy ofNeoproterozoic carbonate rocks in westernTasmania;

– Nd–Sm characteristics of mafic rock units inTasmania and implications;

– Results from a detailed gravity-infill andphysical property study of King Island;

– Geology of some remote islands betweenTasmania and King Island.

0 New U-Pb zircon dates published; and

0 A new stratotectonic map and time-space plot ofTasmania.

It is expected that a volume of extended abstractsof the papers presented at the workshop will beproduced during 1999.

The ‘TASGO’ project officially concluded on 30June 1998. The tomographic interpretation of thecrustal structure of Tasmania, which is beingundertaken in conjunction with the AustralianGeodynamics Cooperative Research Centre, will notbe completed until 2001. Following completion, aworkshop will be conducted at which tomographicdata and models will be presented, together with anynew interpretations of other data collected during theproject.

As a follow on to ‘TASGO’, an agreement has beenreached with the Australian Geological SurveyOrganisation for a new, one year NGMA Project,codenamed ‘TASMAP 99’ (Tasmanian MappingAccord Program 1999). This project will consist of twoparts, the first part being to undertake the acquisitionof further U-Pb zircon dates (1999–2000). These datawill be used to:

0 compare quartz-rich sedimentary sequences fromeastern and western Tasmania; and

0 using zircons derived from granitic samples to testthe interpretation, obtained from the seismic data,that the nature of the lower crust under westernTasmania is different to that under easternTasmania.

The second part of ‘TASMAP 99’ is to acquireapproximately 25 000 km of airborne geophysical dataover shallow cover in the north-central part ofTasmania. The acquisition of these data is expected tooccur during April–May 1999.

Regional Minerals Program (RMP)

The Regional Minerals Program is a co-operativeprogram between the Commonwealth Government,the State Government and the mining industry.

The aims of the RMP are to:

0 propose a regional development plan to identifythe infrastructure needed to support an expandedindustrial base in Tasmania, together withassociated downstream processing opportunities;

0 make existing mining and mineral processingoperations more cost effective by recommendingsolutions to common problems, such asinfrastructure and energy limitations;

0 lower the development cost of new projects; and

0 determine the remote sensing and ground dataneeded to facilitate exploration for minerals, oiland gas.

The project was initiated during 1997/98 with ascoping study and tenders are currently being invitedfor the consultation phase of the project. The projectwill be overseen by a Steering Committee comprisingrepresentatives from industry, the Commonwealthand Tasmanian governments.

Major Issues and Initiatives

Managed and/or Monitored

during 1997/98

Restructuring of Outputs

The MRT outputs were restructured to recognisedigital geoscientific data capture, maintenance andoutput. The new output — Digital Geoscientific DataCapture, Maintenance and Output — involves theproduction of digital data from the metallic mineral,industrial mineral and hydrocarbon investigationactivities.

This digital data are used by the mining industry toassess the mineral potential both inside and outsideTasmania’s Strategic Prospectivity Zones. It is alsoused by other stakeholders for land managementpurposes and by other levels of government to assistin the assessment of geohazards.

There has also been a refocusing of resources to theLand Management, Environment and RehabilitationOutput because of an increase in activity in this area,particularly in relation to land rehabilitation activities.This output will have increased resources in 1998/99with the employment of an environment officer whowill undertake mine and quarry inspections.

The continued development of the integratedgraphical and geographic databases of mineral andpetroleum resources will assist in the continuedeconomic development and environmentalmanagement of Tasmania’s resources.

Rehabilitation of AbandonedMining Lands Program

This Administered Payment represents theTasmanian Government’s contribution towardsrehabilitation of abandoned mining land. The level offunding was originally to be set by reference to theamount of revenue arising from the implementation ofa specific component of the new royalty regime. Theamount allocated for 1997/98 was $265,000.

The major program for the year was carried out atabandoned alluvial tin mines in northeast Tasmaniaand included:

0 Erosion control works at the Monarch andEndurance mines;

0 Dam repairs at Star Hill and Endurance (at the BlueLake);

0 Regrading and revegetation at Star Hill; and

0 Water quality improvement trial at the Monarchmine.

At Rossarden seeding and fertilising was carriedforward to complete the previous year’s program. Acollapsing treatment plant structure at Waratah wasremoved and the area cleaned up. Studies into aciddrainage and metal contamination in water werecarried out at the University of Tasmania to enableplanning of remedial work in the Zeehan area.

Capital Investment Program

An issue of urgency is the need to expand MRT’score library facility.

The amount of company-produced explorationdrill core that MRT is required, under legislation, tostore exceeds the capacity of the present facility anddrill core is currently being accommodated in anoverflow store, which is now full.

This situation will be critically exacerbated in thenear future with the potential for MRT to receive aflood of core requiring archiving. This will result fromthe cessation of underground mining at the Hellyermine in 2000, uncertainty over the future of the MtLyell mine, and with the mining operation at Roseberyunder review. Given the volatility of the miningindustry, there may be further major unanticipatedstorage requirements at short notice.

Unless a new facility is provided, there is a highrisk that valuable information, in the form of drill core(replacement cost of $100 per metre), will be lost. Thedrill core represents one of the main databases forattracting mineral exploration investment intoTasmania.

Departmental Fees and Charges

Target Actual Target1997/98 1997/98 1998/99($,000) ($,000) ($,000)

Rents & Fees 771 781 770Royalties 7,750 8,200 10,000Sales of Maps and Publications 3 26 25

CODES-SRC

Funding of $68,000 for post-graduate scholarshipswas provided to the Centre for Ore Deposit Research(CODE- SRC) at the University of Tasmania.

10



11

Management of Mineral Resources Tasmania(as at 30 June 1998)

Executive Director Mineral Resources —

Dr A. (Tony) V. Brown

Telephone: (03) 6233 8365; Email: [email protected]

Managing Geologist (Industrial Minerals, Hydrocarbon and Tenements) —

Ms Carol A. Bacon


Managing Geologist (Metallic Minerals) —

Dr Geoffrey R. Green


Chief Geologist (Engineering and Groundwater) —

Mr W. Loyd Matthews


Manager, Geographic Information Systems and Geophysics —

Dr Robert G. Richardson


Manager, Finance and Administration —

Mr Matthew N. Fitzgerald


Manager, Data Management —

Mr Ken G. Bird


Registrar of Mines —

Mr Dennis R. Burgess


1997/98 Performance Indicators

Growth in mineral exploration activity is essential for future development of the mineral sector and for theeconomic well being of Tasmania. Mining and mineral processing accounts for over 40 per cent of Tasmania’sexport capacity. Based on industry estimates, approximately $22 million was paid to the Tasmanian and localgovernments in charges, fees and taxes during 1997/98, including $8.2 million in royalties.

Exploration activity is underpinned by updating and providing quality geoscientific data relating toTasmania’s mineral resources. The activities of MRT are directed at the capture, storage and promotion of suchinformation, with the increased availability of this information being measured and correlated with explorationinvestment. Enhancement of geohazard information is also of high importance to stakeholders of MRT, as is theeffective administration of MRT’s regulatory framework.

Achievement against internal targets

Measure Target1997/98

Actual1997/98

Target1998/99

Digital geoscientific coverage of Tasmania

1:250 000 scale maps and associated databases— five maps needed to cover the State

Revision of data forexisting five maps

Completed data upgradeand new output for the

five maps

(Note 1)

Number of 1:25 000 scale maps(418 maps needed to cover State)

10(total = 43)

15 (Note 2)(total = 48)

12

Digital geoscientific coverage ofTasmania’s geohazards

2 maps completed 1 map completed(Note 3)

3

Collection of primary digital geoscientificdata (km2) (Note 4)

200 200 200

Notes:

1 In future this series will automatically be upgraded as new 1:25 000 scale series maps are produced. During 1998/99 therevised 1:250 000 scale data will be generalised and used to produce a 1:500 000 scale geological map of Tasmania.

2 The extra number of maps produced during 1997/98 resulted from the data for five maps being captured externally, usingreallocated internal funds. This enabled MRT to catch up with decreases in the past two years as a result of resourcesbeing allocated to the Regional Forest Agreement process.

3 Primary digital geoscientific data relates to the collection and compilation of data about Tasmania’s geology and mineralpotential. These data are then used for mineral exploration, land management and planning.

4 Only one map was produced due to the field officer being involved in a serious accident in December 1996. This resultedin no field work being undertaken between January and June 1997.

Achievement against external targets

Area Goal 1996/97 1997/98 % Increase

Percentage of total AustralianExploration Expenditure

To increase and holdpercentage above 2% (Note 1)

2.26% 1.94% -14.3%

Exploration Expenditure(financial year)

To increase to a minimum of$30 million per year

$26.0 million $20.7 million -20.4%

Exploration Expenditure(calendar year)

To increase to a minimum of$30 million per year

$26.0 million(1996)

$29.6 million(1997)

+13.8%

Area held under ExplorationLicence

To obtain an increase 10 019 km2 9518 km2

(Note 2)-5.0%

Number of ExplorationLicences granted

To obtain an increase 153 132(Note 3)

-13.9%

Exploration drilling metrescompleted

To obtain an increase 72 633 86 420 +19.0%

Percentage of StrategicProspectivity Zones (SPZ)area held under EL’s

To obtain an increase 35.1% 30.8%(Note 4)

-12.3%


12

Notes

1 The 2% is based on twice the percentage of the area of Tasmania in respect to the whole of Australia.

2 These figures are for metallic and non-metallic minerals only. A further 11 938 km2 was held for onshore oil exploration in1997/98 (11 897 km2 in 1996/97). The decrease in area is due to a number of companies having dropped largereconnaissance exploration areas and concentrating on small target areas.

3 The decrease in number of applications is due both to the same reason as in Note 2 and an Australia-wide downturn ingreenfield exploration. There is also a tendency for exploration to occur over existing mining leases.

4 The decrease in percentage is due to the reasons given in Notes 2 and 3.

Financial Performance

In accordance with the Financial Management and Audit Act 1990 the Department is required to report on theyear’s financial transactions against the original appropriation. Detailed records were published in the TasmaniaDevelopment and Resources (TDR) annual report to Parliament.

In 1997/98, the Mineral Resources Outputs were allocated $5.107 million. Overall the allocation represented asmall increase over the 1996/97 appropriation to cover for CPI indexation of salaries and to pay for the rental ofadditional temporary storage of core samples.

Revenues from Rents and Fees from Mineral Lands raised $0.78 million which was comparable to previousyears and the budget of $0.77 million. The increase is largely as a result of a full year of production from theSavage River mine and the impact of the further incremental increase in royalty rates.

Revenues from mineral royalties raised a total of $8.2 million which exceeded the budget of $7.75 million.

Outputs — Application of Funds, 1997/98

$’000

Metallic Mineral Resource Investigation and Promotion Program 989

Industrial Mineral and Hydrocarbon Investigation and Promotion Program 852

Land Management, Environment and Rehabilitation Program 1,203

Tenement Management and Royalty Administration 971

Digital Geoscientific Data Capture, Maintenance and Output 759

Administered Payments 333

Total 5,107

During 1998, departmental restructures were undertaken following the election of a Labour Government inTasmania. As a result of this restructure MRT is no longer a division of TDR (now the Department of StateDevelopment) and has been attached as a division to the Department of Infrastructure, Energy and Resources.

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Mineral Resources Tasmania— Review of 1997/98

Mineral Resources Tasmania consists of sixbranches: Metallic Minerals and Geochemical Services;Industrial Minerals, Environment and TenementManagement; Geographical Information Systems &Geophysics; Engineering Geology and Groundwater;Data Management; and Royalty, Finance andAdministration.

Because of the integrated nature of the branches,outputs provided under the banner of the TasmanianGeological Survey are contributed to by staff of most,if not all, branches.

Metallic Minerals

and Geochemistry

This section is responsible for administering theallocation of metallic mineral tenements, monitoringthe performance of mineral exploration in Tasmania,acquiring primary geological data, providingpetrological, mineralogical and geochemical analysesfor government, preparing geoscientific data fordigital capture and maintaining a number ofdatabases.

The 1997/98 financial year saw further changes inthe major metalliferous mining industry of Tasmania,with some operations experiencing difficulty becauseof declines in the prices of most metals.

Australian Bulk Minerals formally recommencedoperations at Savage River and Port Latta on 8December 1997. Western Metals Limited announced atakeover bid for Aberfoyle Limited, the operator of theHellyer mine, while the Renison tin mine was sold toMurchison United NL.

During 1997/98 the Metallic Minerals Section wasinvolved in a wide range of activities including thefollowing.

Regional Forest Agreement

The Section provided further technical inputduring the period leading to the signing of the RFA on8 November 1997.

Geoscientific data generation

Primary geological data acquisition for the Cethana1:25 000 scale map sheet, in the Mount Read StrategicProspectivity Zone (SPZ), was completed and theWilmot 1:25 000 sheet was compiled for publication.The 1:25 000 scale Dempster sheet, in the Balfour SPZ,was mapped and compilation was advanced at year’send. Mapping of the Picton sheet, in southeastTasmania, was almost completed.

Seven geological map sheets (Gladstone, Owen,Gormanston, Darwin, Heemskirk, Holder and Folly)were prepared for digital capture.

Reports on sub-projects of the National GeoscienceMapping Accord TASGO Project were prepared andpapers on other projects were presented at a TASGOworkshop held in Hobart in April:

0 reports were completed on the Boat Harbour Fault,a major structure in northwest Tasmania, and onthe geology of some islands in western Bass Strait;

0 papers were presented by members of the Sectionon the geology of some islands in western BassStrait, the lead isotope composition of mineraldeposits in northeast Tasmania, and on the BoatHarbour Fault. Section members also contributedto studies of the age of the Mount Read Volcanicsand other rock units, and on the interpretation ofthe seismic survey of offshore Tasmania.

A draft report on the study of the nature of goldmineralisation in the Cygnet area was completed anda report on the Weld River area was well advanced.

The petrologist completed reports on the potentialfor resources of zeolites and corundum in Tasmania.

A regional study of the structural controls on goldmineralisation in northeast Tasmania was completedto draft report stage. A paper on this work, whichrepresents a major advance in the understanding ofthe structural controls on gold mineralisation in theregion, was presented at the TASGO Workshop.However this project was initiated by MRT and is notpart of the TASGO Project.

Promotion of Tasmania’s explorationpotential and minerals

MRT’s exploration promotional booklet wasupdated and was used in successful visits to miningand investment companies in Perth, Melbourne,Sydney and Brisbane.

An article on the prospectivity and investmentclimate of Tasmania was written for the AustralianJournal of Mining and published during the year.

An illustrated information book and poster wasprepared for the official State Mineral Emblem,crocoite. Work on the updating of the Catalogue ofMinerals of Tasmania is now substantially complete.

The petrologist led a field trip around Tasmania fora German geological/mineralogical society(Vereinigung der Freune der Mineralogie undGeologie (VFMG) e.V.).

Core library

The Section prepared a detailed submission forfunding of extensions to the core library using theDepartment of Treasury and Finance Project InitiationProcess methodology. Supplementary storage spacewas hired for overflow from the existing store, but by

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year’s end had nearly been filled with the remainingspace committed for core expected in the near future.

Splitting storage between two localities results inoperational inefficiency, potential security problemsand a diminution in the level of service provision.Because further major demands are anticipated on thecore library in the near future, particularly with theimpending closure of the Hellyer mine, a decision on anew or extended facility in the coming year isimperative.

Petrological laboratory

The lapidary and petrology laboratories provided atotal of $44,251 worth of analyses and services to bothgovernment ($21,860) and external clients ($22,391).Most of the external work cannot be otherwiseconducted within Tasmania.

The lapidary laboratories prepared 421 standardthin sections, 101 polished thin sections and 24 fluidinclusion chips types, making a total throughput of546 samples.

The technical officer processed 542 samples byX-ray diffraction (XRD), including 94 quantitative dustanalyses. He also conducted 62 soil and sizing testsand 149 optical asbestos identifications, a total of 682samples processed, valued at $37,661.

A total of 577 external samples were received forinvestigation, mostly by XRD. These samples include174 for the Centre for Ore Deposits Research at theUniversity of Tasmania (CODES SRC), 262 foroccupational health clients, 13 construction materialsand 128 samples for other paying customers. Thisexternal work came from a wide range of sources,including the University of Tasmania, Department ofTransport, Hydro-Electric Corporation, Department ofPublic Prosecution, and various other governmentdepartments, various mining, mineral processing andmineral exploration companies, and the generalpublic. Forensic studies required some courtappearances.

The laboratory participated in an international‘round-robin’ XRD test program for quantitativeanalysis.

Construction material studies, as a part of theTasmanian Alkali-aggregate Reactivity ResearchProject (TAARRP), continued in conjunction with theHEC, Department of Transport, the Concrete Instituteand various companies. Some of the work has beenproduced as consultant reports and individualsponsors cover most of the costs. The project isinvestigating concrete and aggregate used in majorstructures (bridges, dams, etc.) in Tasmania, in regardto the form of deterioration known as alkali-aggregatereactivity.

Curatorial work has included the updating of rockcollection and storage databases, preparation ofdisplays and posters, and supervision of the rockstore. A temporary employee was engaged to produce

an inventory of the rock collections, and a computerdatabase generated for later integration with TIGERand TASROCK.

Geochemical laboratory

Following downsizing in 1996/97, the laboratory isstaffed by a senior chemist and a technical officer. Ageologist/geochemist provides part time assistance toa maximum of 50% and a second technical officer isused some 30% of the time.

The laboratory supplies the analyses necessary tomaintain the databases of MRT. A total of 665 samplesthat required 12,171 individual determinations weresubmitted for analysis during the year. Thedistribution amongst general sample types was 175water, 298 rock and 192 minerals and products.

For the year a total of 23,379 separate chemicaldeterminations were recorded. This represents anincrease of nearly 10,000 determinations from theprevious year.

A number of improvements were made to thelaboratory during the year. These included:

0 a recycling cooling system, saving the wasting of avery large volume of water and eliminating thepossibility of a potentially dangerous flood of theground floor, was installed in June 1998.

0 to maintain smoother running of the X-rayfluorescence spectrophotometer (XRF) an updatedpower conditioner replaced the existing powerconditioner which had fused.

0 following advice that the XRF was nearing the endof its useful life and spare parts would beunavailable, a decision to upgrade the equipmentwas made in June 1998.

0 Philips will install the XRS upgrade in July 1998.

0 relocation of the XRF pellet press to Morningtonhas enabled easier and more efficient production ofpellets. Better ventilation and dust extractionensure compliance with occupational health andsafety considerations.

0 the platinum crucibles, used for the fusion of rocksamples to determine the major elements by XRS,were remoulded. This has resulted in moreefficient production of the glass discs used in rockanalyses.

0 reconditioning of the fluxer enabled developmentof a modified method that allowed a substantialbacklog in fluorine analyses to be cleared.

On-going activities

A start was made in preparing a comprehensiveoccupational health and safety policy for field andlaboratory work.

Mineral exploration report and explorationperformance assessments were carried out as needed,as was preparation of promotional leaflets forExploration Tender Areas.

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Numerous meetings were held with industry andrequests for information were answered promptly.Presentations were given to the Tasmanian MineralsCouncil Exploration Group meetings.

Engineering Geology

and Groundwater

Three geologists, including a chief geologist and asenior geologist, staff this section. A consultantgeologist was employed from March 1998 to examinesand resources in the Hobart region, while a projectofficer was appointed in June 1998 to undertake astudy of hydrogeological aspects of areas subject tosoil salinity. A project geologist from another sectionis undertaking 1:25 000 scale geological mapping ofthe Hobart area. This work will have particularapplication for the proposal to undertake landslidezone mapping in the Hobart region.

The main activities of the section were land-riskmapping in northwest Tasmania and a groundwaterstudy of the Sorell area in southeast Tasmania.Groundwater information was collected from contractwater bores from several areas and the compilation ofinformation on groundwater in coastal sandscontinued. A study of sand resources in the Hobartregion commenced during the year, as did a NaturalHeritage Trust-funded soil salinity project. A largenumber of enquiries from the public, other agencies,local government and consulting firms were dealtwith. These enquiries included land stability,foundation conditions, groundwater prospects andgroundwater protection.

Groundwater

A major part of the groundwater activity duringthe year was the compilation of groundwaterinformation for the Sorell map quadrangle, one of thedrier regions of the State. This compilation mainlyused information derived from contract bores,although a few investigative bores were drilled byMRT some years ago.

The majority of bores have been drilled in theSorell and Dodges Ferry areas, and there is relativelysparse information throughout much of the remainderof the quadrangle. Dodges Ferry does not have areticulated water supply and consequently numerousbores have been installed. Water quality in the Triassicrocks at Dodges Ferry is very variable but the water iscommonly used for garden watering on the sandysoils that occur in the area.

Bores in the Pawleena Road area near Sorell havemainly been drilled in Tertiary basalt and areconsistently high yielding, with outputs normally inthe range of 2–12 litres per second. Again, quality is alittle variable and uses are somewhat restrictedbecause of the salt content, although the water isextensively used for garden watering and irrigation.

Some work has been undertaken on thecompilation of groundwater information in theOatlands quadrangle, and more information ongroundwater in coastal sands around Tasmania wascollected.

Monitoring of a series of bores around Tasmaniacontinued, with data loggers being used to monitorwater levels on a continuous basis. Water samples forchemical analysis are extracted from each of the borestwice a year. Monitoring of bores in the irrigation areabetween East Devonport–Port Sorell and Sassafrascontinued. In general, winter rains appear to largelyrecharge the dominantly Tertiary basalt aquifers inthis area.

Groundwater protection issues continued to makeup a significant part of the work of the section, mainlyinvolving the assessment of consultant’s reportsdealing with the establishment of refuse disposalareas. Groundwater data have been supplied to anumber of consultants investigating possiblegroundwater contamination at a number of sitesaround Tasmania.

Data have been collected from a number of regionsin northern Tasmania for compilation of 1:250 000scale groundwater maps. Of particular note is theWestbury–Whitemore region, where a basalt aquiferat Whitemore supplies irrigation quantities of water(up to 15–20 litres per second) for use on dairying andcropping properties. A summary of groundwater useand potential in the Meander catchment was preparedfor the Department of Primary Industries, Water andEnvironment (DPIWE) as part of their study of waterresources in that region.

Advice on groundwater prospects for particularareas continues to be given to property owners anddrillers.

The groundwater database, BORIS, has beenmodified from time to time to provide moreappropriate outputs. The database manager hasattended workshops to aid in the development ofuniform databases on an Australia-wide basis.

The Commonwealth (under the Rural AdjustmentScheme) has funded a joint project with DPIWE toinvestigate groundwater resources in the northernMidlands–Fingal Valley region, an area frequentlysubject to drought conditions. Work on thegroundwater part of the project will begin in 1998/99.

Engineering geology

The major project undertaken in engineeringgeology was the continuing preparation of regionallandslide risk information for northwest Tasmania. A1:25 000 scale map covering the Burnie and Stowportareas was completed. This was the third map of aseries of six in the project. Some work was undertakenon the next sheets to the west (Wynyard and Calder).The published maps show areas of recently activelandslide movements, areas of old landslides andsteep areas where care needs to be exercised if

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development is proposed. The maps are of particularinterest to planners, for the development of planningschemes, and to property owners and developers.

Monitoring of groundwater levels in bores on andaround the landslide at Rosetta continues. Technicaladvice is regularly given to the Glenorchy CityCouncil on aspects associated with the landslide,although the area appears to have largely stabilisedover the last year or so.

A consultant surveyor monitors movements on anumber of landslides in northern Tasmania twice ayear. These landslides threaten property, access roadsand railway lines. Movement continues to beindicated on a number of slides, including PleasantHills, Legana and Beauty Point.

Advice on land stability is sought by localgovernment, developers, property owners andpotential purchasers of property.

Soil salinity project

A project to examine the hydrogeological setting ofareas subject to soil salinity is being funded by theNatural Heritage Trust. This 18 month project will beundertaken in close liaison with DPIWE, which hashad a funded project for some years to identify areaswith soil salinity problems. A project officer wasappointed in June 1998 with a planned projectcompletion date of December 1999. The project willinvolve detailed geological mapping of selected areas,drilling to install piezometers, determination ofgroundwater flow directions, monitoring of waterlevels in bores and a study of water chemistry.

Sand resources study of the Hobart area

A $50,000 study of sand resources in the Hobartarea is being supervised within the section. Asresources on current leases become depleted, otherareas will need to be developed for the extraction ofsand/gravel for use in the building and constructionindustry, particularly in concrete manufacture.Existing large resources of sand are mainly in areaswhere subdivision for housing has taken place or arewithin reserves or zones where sand extraction is not apermitted use. This includes Seven Mile Beach, thelargest known sand resource in the region, which iszoned a recreation area.

The study will involve surface examination ofareas with potential to supply sand as well as thepresent lease areas. Where possible, drilling and testpitting will be undertaken and broad assessments ofresource will be made. The project began in March1998 with the appointment of a consultant toundertake the study, and is expected to be completedby the end of November 1998. The study is expectedto indicate if other areas around Hobart can supplysignificant quantities of sand and gravel and givesome idea of the resources left on current leases.

General

As in previous years, there were a large number ofphone enquiries regarding groundwater andengineering geology. These usually relate togroundwater prospectivity and landslide risk but awide range of advice is sought. Mineral wateroccurrences are a fairly common subject.

Application was made to the Natural HeritageTrust for funding to examine the effects of wastedisposal and particular land uses on groundwaterquality. It is proposed to prepare guidelines forgeologically-related criteria in the selection of sites forwaste disposal.

Advice was given to an Honours student from theUniversity of Tasmania on a project involving landstability at Windermere in the East Tamar area.

Meetings of committees regarding groundwaterwater quality and soil conservation were attendedthroughout the year.

Hydrocarbons and

Tenement Management

Strategic Prospectivity Zones

Strategic Prospectivity Zones (SPZ) cover25 200 km2 or 37% of Tasmania. The areas in each SPZoccupied by mining tenements at the end of June 1998are shown below.

SPZ Metallic Non-MetallicArea Occupied Area Occupied(km2) (%) (km2) (%)

Adamsfield 0.0 0.0 0.0 0.0Arthur 937.6 84.7 1.6 0.1Balfour 2073.4 53.0 3.4 0.1Beaconsfield 19.0 99.7 4.0 21.0Cape Sorell 709.2 51.3 0.0 0.0Mount Read 1463.3 20.4 0.0 0.0North East 2024.9 20.9 265.0 2.7Zeehan/Waratah 479.0 26.1 0.0 0.0

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Oil and gas exploration

In April 1998 an appraisal well (Yolla 2) was drilledin permit T/RL-1 in the Bass Basin. Drilling confirmedvolumes of between 450 and 600 billion cubic feet ofliquids-rich gas in the Yolla field. A second appraisalwell is planned to confirm the economic viability ofthe field. The retention licence (T/RL-1) over the Yollagasfield is held by a consortium headed by BoralEnergy Resources Limited. Efforts are continuing tofind a market for the gas in either Tasmania orVictoria.

The White Ibis 1 well was drilled in May in permitT/18P on a prospect 40 km west of the Yolla field.This well made a gas discovery that is sub-commercialon a stand-alone basis, but which may be tapped aspart of a development of the Yolla field.

Two offshore areas in the Sorell Basin, off the westcoast of Tasmania, were gazetted for release in May1998.

Exploratory drilling by Great South Land MineralsLtd continued onshore in southern Tasmania.

Industrial minerals

The quarrying of limestone and dolomite forcement and agricultural purposes forms a large part ofthe non-metallic minerals industry in Tasmania. Thedevelopment of the new open pit and primary crusherby the Goliath Portland Cement Company Ltd atRailton has resulted in increased production thisfinancial year.

In the past year two magnesite deposits south ofBurnie have been the subject of resource delineationdrilling and pre-feasibility planning.

The Arthur River–Lyons River deposits are held byCrest Resources Australia NL. In recent drilling anindicated resource of 29 million tonnes of 42.8%magnesium oxide was proven. At a plannedproduction rate of 90 000 tonnes per annum ofmagnesium this resource would support a plant for inexcess of 100 years. Inferred resources in this area arein excess of 180 million tonnes of +40% magnesiumoxide. BHP Engineering started preparing apre-feasibility study towards the end of the financialyear.

Golden Triangle Resources NL have tenementsover the Main Creek deposits to the south of theSavage River mine. Recent drilling has established aninferred resource of 47.4 million tonnes at 43.36%magnesium oxide. The company is currentlyundertaking pre-feasibility scoping studies andenvisages an underground mine with a minimum ofsurface disturbance.

Silica is quarried in the Beaconsfield area for use byTEMCO in the production of silico-manganese. Silicaflour is mined by H. Nolan from deposits nearCorinna and is processed by Index Minerals Pty Ltd atHeybridge. The silica flour is used in the productionof high quality lenses and in the electronics industry.

Coal

During the year some re-arrangement of coalsupplies for major industries occurred, with theCornwall Coal Company NL once again assuming adominant position in the market. As well as producingcoal from their own leases, Cornwall also processedraw coal produced at Stanhope by the MerrywoodCoal Company Pty Ltd.

Expressions of interest were received to developcoal resources at Langloh, near Hamilton in the State’ssoutheast. Progress on granting a lease was delayedby legal action.

Beach sands

Australian Titanium Minerals’ proposal to developa mine at Naracoopa on King Island has been slow toproceed because of outstanding landowneragreements and permit approvals. These are nowresolved and development is awaiting financialapproval.

Mining dams

With the repeal of the Mines Inspection Act 1968dam approval has reverted to the Rivers and WaterSupply Commission. It is anticipated that new damsafety legislation will be drafted. The Henty ‘B’residue dam and dams at Tasmania Mines werecommissioned during the year.

Environmental management

The environmental monitoring of explorationprograms continued with diligence and attention todetail. Regular field visits were made to ensureexploration work was being conducted in anenvironmentally responsible manner and thatrehabilitation of past sites was successful.

The fourth edition of the Mineral Exploration Code ofPractice was nearing completion at the end of thefinancial year in preparation for gazetting as a codeunder the Mineral Resources Development Act 1995. TheCode will then have legislative backing in commonwith similar Codes. The fourth edition will complywith the Mineral Resources Development Act 1995 andthe Regional Forest Agreement. In particular newsections will address issues such as biodiversity,geoconservation and the protection of wildernessvalues.

RiverWorks Remediation Program

An investigation to design a remediation strategyfor the Storys Creek and Rossarden abandoned minesites, in an attempt to reduce acid and heavy metaldischarge into the South Esk River system, is beingcarried out by John Miedecke and Partners Pty Ltd.This investigation will be followed by demonstrationtrials in 1998/99 in preparation for rehabilitationwork. The budget of $112,000 includes a contributionfrom the Commonwealth Government RiverWorksprogram. The Division of Environment and Planning

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are providing laboratory analyses and MRT isproviding project management as State contributions.It is anticipated that the remediation program will bejointly funded by the Trust and RiverWorks.

Town planning

MRT has continued its activity with planningissues in respect to quarrying and extractiveindustries. Land use conflicts caused by residentialencroachment close to existing operations continue tobe a cause of concern. The Division of Environmentand Planning has been developing a Model PlanningScheme framework that should result in uniform andsustainable planning decisions being made andgreater certainty being provided for the communityand industry.

The Howrah Hills Local Area Plan in the City ofClarence was the subject of hearings and court action,which were still in progress in June. MRT has madesubmissions concerning residential encroachment inthe vicinity of the Mornington quarry. Market forcescaused the operator, CSR Readymix, to close thisoperation and carry out some rehabilitation onworked-out benches. The planning situation stillrequires resolution, as additional long-termrehabilitation of the site, continued operation of thequarry, or an alternative industrial use are still to beapproved.

MRT appealed against a decision of the MeanderValley Council to permit a subdivision immediatelyadjacent to Cresswell’s quarry at Deloraine. Theapplicant withdrew the application and the appeal didnot proceed.

Sand extraction in conjunction with developmentof a horse training facility near Seven Mile Beach didnot proceed to fruition. Sand extraction was anallowable land use on this site although the primaryland use for the area is recreation.

Mining heritage

MRT chairs the Mining Heritage Committee(MHC) with members from the mining industry, theQueen Victoria Museum and Art Gallery, Departmentof Primary Industries, Water and Environment, andForestry Tasmania. The MHC advises MRT on miningheritage policy and on specific issues affectingTasmania’s rich mining heritage.

An archaeological research project wascommissioned during 1998 into the goldfields ofnortheast Tasmania. The aim of this work was toproduce an inventory of the remaining miningheritage sites to allow an objective assessment of theirheritage values. This work will be used to allowinformed decisions to be made on the heritage valuesduring the planning and approval of exploration andmining works.

During the past year MRT has commissionedarchaeological reports on:

0 the Cuni nickel-copper field north of Zeehan;

0 coal bins at the Fenhope Colliery;

0 a preliminary investigation of the Queen Hill areaat Zeehan; and

0 the calciner shed at Waratah.

Registry Section

The Registry Section maintains a number ofregisters and databases, and provides advice toofficers within MRT, inquirers from other agencies,the mining industry and the legal profession on awide range of matters associated with miningtenements and legislation.

The processing of applications for miningtenements and issue of tenement documentationcontinues to provide the majority of work for thesection’s officers.

Close liaison is maintained with officers of theGeological Survey, particularly in regard tomaintenance of the TASXPLOR database, monitoringof exploration expenditure, circulation of companyreports, and preparation and circulation of theTasXplorer news sheet.

Thirty-five Exploration Tender Areas were offeredto potential explorers by way of the TasXplorer newssheet, which is circulated widely within the Australianmining community.

Mining legislation

The Mineral Resources Development Act 1995(MRDA) came into force on 1 July 1997. The aims ofthe MRDA are:

0 to create and maintain an internationallycompetitive and secure investment climate forexploration;

0 to help ensure a sustainable mining industry forTasmania’s future;

0 to provide best current practice Mineral TenementLegislation; and

0 to best fulfil the needs of industry and thecommunity.

After two years of operation with the new Actindustry feedback has been positive and supportive ofthe legislation. An internal agency working committeehas carried out a review of the MRDA and hasproposed a small number of amendments to the Actand Regulations. The proposed changes have beenapproved in principle by Cabinet.

A review of the MRDA under the LegislationReview Program has commenced. The review arisesout of an agreement between State and Federalgovernments and requires assessment of the MRDA inrelation to National Competition Policy and impostson business.

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All forms under the MRDA are available in digitalform and are provided at no charge to clients of thesection.

Court of Mines

Under the MRDA a Mining Tribunal, consisting ofa magistrate, has coverage of the whole State. The Actplaces an obligation on the Director of Mines toattempt to resolve disputes before there is a formalhearing before the Tribunal.

Experience to date suggests that the disputeresolving process built into the MRDA adequatelycovers most matters that would otherwise need to bereferred for formal determination.

Tribunal matters dealt with by MRT or referred tothe Mining Tribunal during the year were:

P, K & B Smith v Minister for Mines

P., K. and B. Smith appealed against the Minister’sdecision to refuse renewal of mining lease 47M/73 atLinda. When the matter was reconvened on 12 Maythe appellant indicated that he did not wish toproceed with the matter.

Australian Titanium Minerals Ltd v Variouslandowners, Naracoopa, King Island

Australian Titanium Minerals Ltd (ATM) sought adetermination from the Mining Tribunal in regard to afair and equitable compensation payment for ownersof private land where ATM proposes to mine.

A panel was set up consisting of the Director ofMines and representatives from the TasmanianFarmers & Graziers Association and the TasmanianMinerals Council. Two meetings were convened byMRT and submissions were heard by counsel for bothparties. The Mining Tribunal ratified agreements inregard to a significant portion of the land.

Orders applying similar compensation levels to theremaining land were issued by the Mining Tribunal.

V Threader v G Faulkner and P Moore

V. Threader sought a determination from theMining Tribunal in regard to the failure of MessrsFaulkner and Moore to comply with a royaltyagreement that had been entered into. The claim waswithdrawn when the mining lease lapsed.

G & S Wilson and another vPacific-Nevada Mining Pty Ltd

Objections were lodged in regard to an applicationfor an exploration licence in the Cygnet area. Theobjectors owned land within the application area. Ameeting was convened by the Registrar of Mines atCygnet for the objectors and other interested parties todiscuss proposed work programs with the applicantand representatives of MRT. Following the meetingthe objections were withdrawn.

R Fowler v Pacific-Nevada Mining Pty Ltd

Mr Fowler, the manager of a large agriculturalproperty at Rocky Cape, objected to an exploration

licence application over the property. The propertywas visited by the Registrar of Mines and arepresentative of the exploration company. Followingdiscussions the objection was withdrawn.

Mineral Holdings Australia Pty Ltd v B A Farquhar

Mineral Holdings Australia Pty Ltd, the holder oftwo retention licences, sought a determination fromthe Mining Tribunal in relation to the validity of acaveat lodged against the licences by Mr Farquharwho claimed a long-standing interest. The matter wassettled prior to a formal hearing.

C & S Strong and J Morrison v Anglo AustralianResources Ltd

Landowners within an exploration licenceapplication area at Lilydale lodged objections to theapplication. A meeting with each of the objectors wasarranged by the Registrar of Mines who attended witha representative of the applicant. Certain agreementswere reached at each meeting. Formal withdrawal ofthe objections has not occurred.

P Sims v Pacific-Nevada Mining Pty Ltd

P. Sims, representing conservation interests, lodgedan objection against an exploration licence at Balfour.A meeting, which included a representative of theexploration company, was convened by the Registrarof Mines. Following discussion the objection waswithdrawn.

Lease and Licence Applications

Licences applied for during 1997/98

Product Number Area (ha)

All minerals 2 938All minerals and stone 1 41Coal 2 447Dolerite 1 40Dolomite 1 131Easements 3 13Gold 4 659Gravel 17 743Sand 3 45Silica sand 1 20Stone 16 357Stone and gravel 1 2Total 52 3436

Licences granted during 1997/98

Product Number Area (ha)

All minerals 4 1747Coal 1 5489Easements 2 13Gold 2 77Gravel 12 263Sand 1 2Silica sand 1 20Stone 13 168Stone and gravel 2 6Total 38 7785


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Total number of leases and licencesin force at 30 June 1998

Principal product Number Area (ha) Sluiceheads

All minerals 36 21 920

All minerals and stone 3 171

Clay 7 107

Coal 8 6 463

Copper 2 8

Dolerite 2 42

Dolomite 5 272

Easements 26 382 29

Gold 21 1 458

Gold, stone 1 418

Granite 4 50

Gravel 158 3 694

Gravel and clay 1 29

Iron 1 4 067

Kaolin 2 373

Lime sand 3 207

Limestone 11 1 266

Peat 4 858

Quartzite 1 191

Sand 56 2 002

Sand and gravel 25 2 975

Sand and stone 8 160

Sandstone 5 50

Shale 4 39

Silica 6 454

Silica, sand and stone 1 50

Silica sand 2 31

Silver and lead 1 8

Slate 4 185

Specimens 2 8

Stone 255 6 184

Stone and gravel 10 445

Tin 15 1 124

Water 1 16 5

Total 691 55 707 34

Total number of all types of prospecting rightsheld as at 30 June 1998

Mining Tenement Number Area

Exploration Licences —

All minerals 118 9 436 km2

Non metallic 10 82 km2

Oil (onshore) 4 11 938 km2

Retention Licences —

All minerals 15 56 km2

Non metallic minerals 18 293 km2

Prospectors Licences Issued 63 Not applicable

Permits to explore for Petroleum

under Petroleum (Submerged

Lands) Act 1967 5 376 Blocks

Retention Licence under Petroleum

(Submerged Lands) Act 1967 1 9 Blocks

GIS and Geophysics

Staff

The staffing of the GIS and Geophysics sectionstabilised during the year. There are now threepermanent staff in the GIS group who form part of theteam for Project TIGER and also undertake the captureof exploration data. The Computer Systems OfficerLevel 1 resigned early in 1998 and interviews wereheld in June for the selection of a replacement. It isexpected that the new officer will commence duties inJuly 1998.

The main projects of the GIS and Geophysicssection were:

0 data capture from exploration reports;

0 development of the Project TIGER (TasmanianInformation on Geoscience and ExplorationResources) business plan;

0 implementation of Project TIGER Phase 3;

0 IT support for Mineral Resources Tasmania and theWorkplace Standards Authority;

0 precise levelling and indexing of aeromagneticdatasets.

Data capture

Entry of open file stream-sediment geochemistryinto databases continued throughout the year. To date36,417 stream-sediment samples have been entered,representing a total of 252,274 analyses. Samples weremainly from the western half of Tasmania. Digitalgeochemical data are released simultaneously with thecorresponding 1:25 000 scale digital geological maptile. Data compiled during the year covered theDarwin, Dundas, Gormanston, Heemskirk, Maydena,Nevada, Oceana, Owen, Roger, Rosebery, Skeleton,Sumac, Trial, Weld and Wilmot sheets.

Over 1500 company reports have been entered intothe TASXPLOR spatial index of exploration activity.This index includes all open file, closed file andrestricted reports from late 1986 to the present. Theindex allows location of a report detailing any of thecaptured exploration activities (20 themes) that liewithin or overlap an area defined on a map ofTasmania. An updated release (version 2, April 1998)of the open file index and the correspondingTASXPLOR textual data has been made on CD-ROMin both ArcView and Map Info formats.

Project TIGER

Project TIGER is redeveloping the MRTinformation systems. Phase 3 will improveinformation management within MRT by utilisingup-to-date and extensible information technology andis supported by a special appropriation from the1997/98, 1998/99 and 1999/2000 budgets. Thisdatabase management system will be populated withexisting digital data.

21


22


Line spacing 200 m or less

Line spacing 201–500 m

Line spacing >501 m

OPEN FILE AEROMAGNETIC SURVEYS(April 1998)

Planning for Phase 3 was completed during the1997/98 financial year and work commenced on anMRT corporate data model. The TIGER data modelmakes no distinction between spatial and non-spatialdata, with spatial attributes being treated as propertiesof an object that is stored in the database. The firstmilestone to be completed in Phase 3 will beredevelopment of the MRT document indexes(TASXPLOR, PETXPLOR and DOMINFO), presentlyspread across several applications and operatingsystems, by October 1998.

The TIGER system is a component of a broaderwhole-of-government initiative in land informationmanagement known as The LIST (Land InformationSystems Tasmania). The LIST is hosted by theDepartment of Primary Industries, Water andEnvironment and will consolidate all land informationin Tasmania into a single data model accessible to thepublic via the World Wide Web.

Existing MRT databases now have custodians anda detailed examination of the data structures and dataflow has commenced. A number of the databases arebeing either augmented or updated to ease thetransition into the TIGER system. Temporary staff arebeing used to index MRT reports for entry into theDOMINFO database.

IT summary

The computer systems officers provided support toboth MRT and the Workplace Standards Authority(WSA) until early in 1998 when WSA appointed twocomputer systems officers. The Unix network hasmaintained a high level of availability, but there was alarge number of server crashes affecting PC usersduring the latter part of the year. Updated serverhardware and software have been ordered toovercome the difficulties resulting from differencesbetween the desktop and server technologies.

All data communications outside the Rosny Parkbuilding are now via the Networking TasmaniaProject (NTP). This change has also required transferof the MRT World Wide Web home page from withinTDR to a host within NTP. A number of minordifficulties were associated with the change to NTP.Internally MRT is now using both 10 megabit and 100megabit ethernet for data communications.

Hardware and software used by MRT have beenreviewed as part of Project TIGER. Staff viewing andmanipulating spatial data will have a desktopenvironment including ArcView and ER Mapper, datamanagement staff will have a desktop environmentincluding ArcInfo, and all staff will havebrowser-based access to textual and standard spatialapplications. There will be central data andapplication servers with links to The LIST. To meetthese requirements most desktop PCs have beenupgraded and the standard desktop operating systemhas become Windows NT. Three Unix workstationshave also been upgraded to current models.

TASGO Project

This joint undertaking with the AustralianGeological Survey Organisation commenced in 1994with the aim of using high technology studies todetermine the character of Tasmania’s principalgeological structures. A final workshop was held inMay 1998 at which the results from the offshoreseismic reflection profiles and the preliminarymodelling of seismic refraction and wide-anglereflection data were presented. Data are still beingcollated for construction of a tomographic image ofthe Tasmanian crust.

Geophysics

Indexing, and precise levelling where required, ofairborne geophysical data sets has continuedthroughout the year. A total of 40 datasets have nowbeen completed. A number of high quality helimagdatasets have become open file during the year andthese will be levelled and released in the coming year.

Data Management Group

The Data Management Group is responsible for:

0 The recording of mining tenements on theDivision’s maps and plans;

0 the management of the Division’s GeographicalInformation System and Computer-Aided Draftingsystem;

0 the provision of support drafting services.

The Division’s GIS continues to be developed,maintained and used to meet the requirements of ourstaff and clients.

During 1997/98 the capture of geological datacontinued resulting in:

0 the capture and output of seven digital geologicalmaps (Rosebery, Dundas, Oceana, Owen,Gormanston, Darwin and Wilmot) at a scale of1:25 000 in the Mt Read Volcanics Region;

0 the capture and output of two digital geologicalmaps (Heemskirk and Trial) at a scale of 1:25 000 inwestern Tasmania;

0 the capture and output of two digital geologicalmaps (Roger and Sumac) at a scale of 1:25 000 innorthwest Tasmania;

0 the capture and output of four digital geologicalmaps (Maydena, Skeleton, Nevada and Weld) at ascale of 1:25 000 in southern Tasmania;

0 the creation of GIS data sets, covering the aboveproject areas, of other databases relative to mineraldeposits, drill hole locations, stream-sedimentgeochemistry locations and rock chemical analysissample locations;

0 the revision of the 1:250 000 scale digital geologicaldata and maps;

23


24


1:25 000 SCALE

DIGITAL GEOLOGICAL MAP PROGRAM

As at 30 June 1998

Map complete

Map in progress

BOBS

BISDEE

RAMINEA

HASTINGS

CLOUDY

DOVER

PARTRIDGE FLUTED CAPE

CYGNET

LYMINGTON GREAT BAY

ADVENTURE BAY

COMMUNICATION TARANNA

PORT ARTHUR

RAOUL

HIPPOLYTE

TASMAN

MURDUNNA

LISDILLON

MAYFIELD

BOUGANVILLE

GRINDSTONE

BICHENO

FRIENDLY

LODI

PICCANINNY

IRONHOUSE

SEYMOUR

FALMOUTH

BEAUMARIS

LYME REGIS

MUSSELROE

GLADSTONE

DUBLIN TOWN

ST MARYS

FINGAL

ST JOHN

HENRY

APSLAWN

CRANBROOK

SWANSEA

DARLINGTON

RIEDLE

PERON

LANKA

SPURRS RIVULET

BLUE TIER

PYENGANA

BRILLIANT

NATURALISTE

EDDYSTONE

ANSONS BAY

THE GARDENS

BINALONG

ST HELENS

COLES BAY

GRAHAM

SCHOUTEN

TOMAHAWK

MONARCH

ST PAULS DOME

ROYS

SNOW

LEAKE

COLONELS

TOOMS

ROYALTY

RAVENSDALE

TRIABUNNA

ORFORD

SANDSPIT

KELLEVIE

DUNALLEY

PIONEER

DERBY

RINGAROOMA

VICTORIA

SADDLEBACK

MATHINNA

MANGANA

ROSSARDEN

WATERHOUSE

OXBERRY

MAURICE

BEN NEVIS

GIBLIN

STACKS

STANHOPE

HANLETH

DIAMOND

CAMPBELL TOWN

ROSS

MORRISTON

FADDENS

LEMONT

WHITEFOORD

WOODSDALE

BUCKLAND

RUNNYMEDE

SORELL

CARLTON

CREMORNE

PEARLY BROOK

SCOTTSDALE

SPRINGFIELD

BRIDPORT

PATERSONIA

NUNAMARA

BLESSINGTON

EVANDALE

NILE

CLEVELAND

CONARA

JACOBS

ELLINTHORP

TUNBRIDGE

VINCENTS

OATLANDS

STONOR

COLEBROOK

BAINS

TEA TREE

RICHMOND

HOBART

TAROONA

BLACKMANS BAY

BARNES

BOWOOD

NABOWLA

LISLE

TAM O'SHANTER

DILSTON

LAUNCESTON

PROSPECT

LONGFORD

CRESSY

DELMONT

O'CONNORS

MILLERS

PENNY

INTERLAKEN

TABLE

DENNISTOUN

BOTHWELL

KEMPTON

ELDERSLIE

BROADMARSH

NEW NORFOLK

COLLINSVALE

LONGLEY

HUONVILLE

WEYMOUTH

RETREAT

LILYDALE

LOW HEAD

BELL BAY

BEACONSFIELD

EXETER

BRIDGENORTH

WESTBURY

CLUAN

LIFFEY

POATINA

BRADYS LO

ARTHURS LAKE

WIHAREJA

STEPPES

HERMITAGE

CLUNY

CAWOOD

MONTACUTE

HAMILTON

BUSHY PARK

UXBRIDGE

LLOYD

LONNAVALE

GLEN HUON

GEEVESTON

WATERLOO

GREENS BEACH

PORT SORELL

HARFORD

W FRANKFORD

PARKHAM

DELORAINE

MONTANA

QUAMBY BLUFF

BREONA

SPLIT ROCK

MIENA

MONPEELYATA

WADDAMANA

ECHO

DEE

STRICKLAND

OUSE

ELLENDALE

DOBSON

PICTON

BURGESS

MAYDENA

SKELETON

NEVADA

WELD

LEPRENA

RECHERCHE

PRECIPITOUS

PRION

LOUISA

DE WITT

DEVONPORT

LATROBE

RAILTON

SHEFFIELD

GOG

MOLE CREEK

LAKE MACKENZIE

PILLANS

ADA

OLIVE

INA

BRONTE

D?ARCYS

TARRALEAH

WAYATINAH

WYLDS

GORDONVALE

TIGER

ADAMSFIELD

BOWES

ANNE

SCOTTS

RAZORBACK

GLOVERS

FEDERATION

RAY

COX

TOLOPEA

ULVERSTONE

KINDRED

CASTRA

CETHANA

LIENA

BORRADAILE

ROWALLAN

CATHEDRAL

DU CANE

OLYMPUS

RUFUS

ARROWSMITH

MAJORS

ALGONKIAN

SPIRES

POKANA

WINGS

STRATHGORDON

McPARTLAN

SOLITARY

MACONOCHIE

CROSSING

LEGGE

RUGBY

MEL

WILMOT

BURNIE

STOWPORT

RIANA

LOYETEA

CRADLE

WILL

ACHILLES

DOME

GOULDS

COLLINGWOOD

LODDON

VERA

WARNES

ABEL

LANCELOT

OLEGAS

SERPENTINE

VIEW

ROOKERY

PROPSTING

DAVEY

SETTLEMENT

BREAKSEA

HILLIARD

LOONGANA

LEA

PENCIL PINE

WYNYARD

CALDER

YOLLA

TEWKESBURY

PARRAWE

GUILDFORD

PEARSE

CHARTER

BLOCK

TULLAH

SELINA

TYNDALL

GORMANSTON

OWEN

DARWIN

ENGINEER

McCALL

LIMEKILN

D'AGUILAR

INNES

MOORES

OSMUND

LEWIS

ELLIOTT

MULCAHY

MAINWARING

VERIDIAN

MEERIM

KELLY

TABLE HEAD

VARNA

ALBINA

ROCKY CAPE

KEITH

BARETOP

WARATAH

LUINA

RAMSAY

PARSONS

PROFESSOR

STRAHAN

TEEPOOKANA

PHILIPS

SARAH

BIRCHS

HIBBS

ENDEAVOUR

MONTGOMERY

MAWBANNA

MILABENA

FOLLY

ROSEBERY

DUNDAS

OCEANA

KENNETH

JOHNSONS

CUVIER

BIRD

GRIM

STUDLAND

CAMERON

MARRAWAH

BLUFF

SUNDOWN

TEMMA

ORDNANCE

MELLA

TOGARI

DEMPSTER

BALFOUR

LILY

LAGOON

INTERVIEW

HARDWICKE

AHRBERG

ROGER

SUMAC

MALLANNA

BELLINGER

WICKHAM

STOKES

PEARSHAPE

SALTWATER

SEA ELEPHANT

NARACOOPA

GRASSY

EGG LAGOONNEW YEAR

REEKARA

LOORANA

CURRIE

MORIARTY

THIRSTY

PATRIARCHS

SELLARS

LOGAN

FISHER

PUNCHEON

KERFORD

PASSAGE

PALANA

TANNER

EMITA

WYBALENNA

REEF

CHAPPELL

BADGER

ARTHURS

WINGAROO

MEMANA

LEVENTHORPE

WHITEMARK

LOCCOTA

ANDERSON

BARRETTS

PRESERVATION

SISTER

ADAMSON

ROCHONKERAUDREN

WALKER

ROBBINS

MONTAGU STANLEY

SMITHTON

LILEAH

TAYATEA

HOLDER

BERYL

BERTHA

DONALDSON

SAVAGE RIVER

MEREDITH

LIVINGSTONE

STRINGER

HEEMSKIRK

TRIAL

MINERAL

RESOURCES

TASMANIA

Tasmania

0 the capture and output of one map(Burnie–Stowport) in the Engineering Geology,Land Stability Hazard Mapping Project, innorthwest Tasmania, at a scale of 1:25 000;

0 the capture and output of ten digital geologicalmaps of Macquarie Island at scales of 1:50 000,1 25 000 and 1:10 000.

The capture of digital historic exploration licenceboundaries continued.

Sixty-six datasets of geological or tenement datawere produced for clients.

Output maps of digital geological data wereproduced on demand on the division’s inkjet plotters.

The computer-aided drafting system continued tobe used as a support tool for many projects.

Publications

The Publications Section is responsible for theproduction of geological reports, promotional books,newsletters and material for displays, ExplorationTender Area flyers, maintenance of the MRT Internetsite, and other reports and leaflets as required. Majorpublications produced during the year included:

0 the Mineral Resources Tasmania Annual Review;

0 Mineral Exploration Opportunities in Tasmania.

0 Three issues of the ProspecTas newsletter wereissued during the year.

Reports issued in the Tasmanian Geological SurveyRecord series included:

0 1996/10 — Reconnaissance isotope chemostratigraphyof Neoproterozoic carbonate rocks in western Tasmania,by C. A. Calver;

0 1996/11 — Resource assessment: The Calder–Flowerdale gravel pits, by J. McKibben;

0 1996/13 — An assessment of the resource potential fornepheline syenite at Cygnet and elsewhere in Tasmania,by J. L. Everard;

0 1997/04 — Interim Management Plan for the Mt ReadRAP;

0 1997/09 — A re-evaluation of the structuralsignificance of the Boat Harbour Fault, northwesternTasmania, by D. B. Seymour;

0 1997/10 — Some Tasmanian coal statistics (1997),by C. A. Bacon;

0 1998/01 — Stability conditions at Shark Point Road,Penna, by W. L. Matthews;

0 1998/02 — Tenement and Cultural HeritageManagement at Mineral Resources Tasmania,by J. Pemberton and C. A. Bacon;

0 1998/03 — Sorell Basin, Tasmania, Australia. Releaseof offshore petroleum exploration areas in 1998 —T98-1 & T98-2, by C. R. Calver;

0 1998/04 — Platinum Group Elements and their hostrocks in Tasmania: A summary review,by A. V. Brown;

0 1998/05 — Rock and gravel resources of King Island,by C. R. Calver.

Library

During the year the library was staffed by afull-time librarian, with assistance being provided twodays per week. The Workplace Standards Authoritycollection, although housed in the Rosny Park library,was maintained separately by a part-time librarian.

Much effort has been put into maintenance andimproved access to the collection, particularly thedepartmental publications, many of which werepreviously uncatalogued. Two temporary staff wereemployed from March to index all the MRTpublications onto the DOMINFO database as part ofProject Tiger. This has resulted in dramaticallyimproved access to this collection and allows for easyprinting of the relevant references.

Technical services

Cataloguing of books and serials onto InmagicDB/Textworks 2.2 for Windows continued during theyear. New additions lists were generated and postedon the MRT intranet to allow staff online access.Selected journal contents pages were also posted.

A library services and collection information pagewas compiled and included on the MRT internet site.

Collection

Because of a general increase in the newsubscription prices for journals and a weakening ofthe Australian dollar against the US dollar,investigations into rationalising our journal collectionhave commenced.

Despite financial restrictions over 30 books werepurchased during the year.


25

Review of Mineral Sector Operations

Value of the Mining Industry

As well as the direct contribution to the Tasmanianeconomy through infrastructure development andemployment, the mining and mineral processingindustries also contribute to the State through royalty,taxes and charges paid to the Tasmanian and localgovernments.

According to figures obtained by TasmanianMinerals Council surveys, the total value of sales orshipments for 1997/98 was $1294 million, a 10%increase over the previous year. Total equivalent fulltime employment on mine sites was 3948 with a grossannual payroll of $119 million. Government taxes andcharges, including royalties, amounted to $19.3million, with electricity and port charges adding afurther $132 million. The minerals industry spent atotal of $634 million on goods and services (excludingelectricity), of which $364 million was spent withinTasmania.

MRT collects royalties and rents and fees frommineral lands, which are forwarded directly toconsolidated revenue. In 1997/98, royalty revenueamounted to $8.2 million compared to $5.8 million in1996/97. This increase mainly resulted from a full yearof production at the Savage River mine and the impactof the further incremental increase in royalty rates.

An original estimate of $10.0 million was made forroyalty revenue in 1998/99, which was based onincreasing mine production and the increased advalorem royalty rate applicable for the year. Theoriginal estimate was made when commodity priceswere more favourable. The current market conditionswill mean that this revenue target will not be reached.

Audit

The audit program for 1997/98 included on-sitevisits to four metallic mines and six non-metallicmines. The program continues to ensure that miningcompanies are paying royalty in line with theregulations.

Royalty regime

In Tasmania a sales and profit-based royaltyapplies to metallic and coal mines, whilst aproduction-based royalty is payable on non-metallicmaterials. The two-tiered metallic and coal royaltyconsists of an ad valorem percentage payable on netsales, and a formula based percentage of profits.

Following negotiations with the mining industry,new royalty rates were approved by in August 1997,with the new regime taking effect from 1 July 1997.Non-metallic rates increased from $1.00 per tonne to$1.20 per tonne, while metallic minerals and coalroyalties are being increased incrementally over anumber of years.

In 1998/99 the ad valorem component of royaltywas payable at 1.5% of net sales. The exponentialfactor used to calculate the profit component moved to0.35% from 0.3%. There are two further increments inrates to occur, with the ad valorem rate to move to1.6% of net sales in 1999/2000 and the exponential rateto become 0.4% in 2000/2001 and beyond. There is amaximum amount of royalty payable at 5% of netsales.

Mining companies that expand into downstreamprocessing to produce a metal receive an automatic20% rebate on royalties payable. Companies thatproduce gold doré receive a 10% rebate on royalties.The Minister has the discretion to increase the golddoré rebate to 20%, depending on criteria such as thelevel of investment undertaken.

Metal Prices and Future Trends

Although it was expected that strong industrialproduction and economic growth would result instrong growth in mineral consumption, the AustralianBureau of Agricultural and Resource Economicsreported that world markets for minerals remainedsubdued throughout 1997 and 1998, primarilyreflecting the significant downturn in economicgrowth in the Asian economies. Production of majorminerals remained strong, and the building of stockswas accompanied by falling prices, with world pricesexpected to fall further during 1998. Lower worldeconomic growth expected in 1999 is likely to result inrelatively weak demand for minerals, at a time when itis expected that supply growth will be maintained.The resultant buildup of stocks will see pricesprobably remain weak in 1999, although somerecovery of gold prices is predicted.

The unfavourable commodity prices are alsoexpected to impact on levels of mineral exploration,with Australian expenditure levels declining byalmost 6% in 1997/98, the first fall in six years.

Individual metal prices

Copper

Despite a small rise in early 1998, copper pricesdeclined to an eleven year low at the end of June,despite declining stock levels. With copperconsumption by major Asian countries declining andsubstantial increases in production predicted, it islikely that copper production will exceedconsumption, with a resultant sharp decline in thecopper price in 1998/99. Australian production ofcopper is forecast to rise strongly as new mines comeinto production.

26


Tin

Unlike most other metals the tin price improvedmarginally in late 1997 before declining to a low pointin January. The price then improved to a new high inJune, recovering to around the level of January 1997.

Aluminium

Aluminium prices declined throughout 1997/98,with rising production and weak Asian demand likelyto result in increasing stocks and lower prices in1998/99.

Zinc

Following a strong peak in prices in the early partof the year, zinc prices fell sharply and continued todecline throughout 1997/98 despite low stock levels.As production exceeds demand, stock levels areexpected to increase, with a consequent furtherdecrease in zinc prices in 1998/99.

Lead

The average lead price declined throughout theyear. With large falls in demand from Asian countriesthe average world price of lead is forecast to fallfurther in 1998/99 as concentrate and metal supplyincrease faster than consumption.

Gold

Gold prices declined sharply in the last part of 1997and remained low for the remainder of the 1997/98year. However the sharp fall in the $US/$Ausexchange rate resulted in an effective rise in theAustralian dollar gold price to its highest level sinceOctober 1996, and Australian gold production in1997/98 was the highest on record. Global gold pricesare expected to only marginally recover during1998/99, with the Australian price being dependenton the value of the Australian dollar.

27


July

1997

Aug

ust1

997

Sep

tem

ber

1997

Oct

ober

1997

Nov

embe

r19

97

Dec

embe

r19

97

Janu

ary

1998

Feb

ruar

y19

98

Mar

ch19

98

Apr

il19

98

May

1998

June

1998

7000

6000

5000

4000

3000

2000

1000

0

Tin

Copper

Aluminium

July

1997

Aug

ust1

997

Sep

tem

ber

1997

Oct

ober

1997

Nov

embe

r19

97

Dec

embe

r19

97

Janu

ary

1998

Feb

ruar

y19

98

Mar

ch19

98

Apr

il19

98

May

1998

June

1998

$US

per

tonn

e(o

unce

Au)

1800

1600

1400

1200

1000

800

600

400

200

0

AVERAGE MONTHLY METAL PRICES1997/1998

Zinc

Lead

Gold

Metallic Minerals

Base Metals

Aberfoyle Resources Limited– Hellyer mine

Mining

A total of 1 413 690 tonnes of ore at an averagegrade of 11.2% Zn, 5.2% Pb, and 141 g/t Ag wasmined from underground at Hellyer. Waste rockmined totalled 129 451 tonnes.

Ore recovered from pillars accounted for 60% ofthe total production. The mined ore grade was in linewith predictions, although lower than that of theprevious year.

Milling

The mill processed a record 1.44 million tonnes ofore during the year at a headgrade of 10.6% Zn. Thisheadgrade was lower than the previous year.

Concentrate production was:

0 zinc concentrate – 229 016 t @ 50.7% Zn;

0 lead concentrate – 65 185 t @ 57.1% Pb;

0 bulk concentrate – 26 209 t @ 32.6% Zn, 15.3% Pb;

0 copper-silver concentrate – 10 791 t @ 11.6% Cu,4638 g/t Ag.

Concentrate railed to Burnie totalled 366 211 tonnes,with 377 637 tonnes being shipped to smelters.

Developments

A $270,000 Lead Cleaner High IntensityConditioning (HIC) unit and a mechanical blast holecleaner were commissioned. The HIC has improvedlead cleaner circuit performance to give a 1–2% overalllead recovery gain. Capital expenditure totalled$1,096,000.

Ore reserves

Ore reserves at June 1998 were estimated at threemillion tonnes with a grade of 0.3% Cu, 5.4% Pb,10.1% Zn, 120 g/t Ag and 1.9% gt/t Au.

Exploration

Transported metal ion (TMI) soil geochemicalsurveys were conducted southeast and northwest ofHellyer. Twenty-seven diamond-drill holes weredrilled during the year, mainly for mine development.

Environmental initiatives

Rehabilitation work continues at the Que River andCleveland Tin mines. Both sites are nearingcompletion and re-vegetation results are pleasing.

The Hellyer water treatment plant wascommissioned and will contribute to furtherimprovement of the quality of water released from thesite.

Employment

The total workforce at June 30 was 294, comprising161 employees, 113 contractors and 20 apprentices andcasuals.

Pasminco Rosebery Mine

Mining

Ore production at the Rosebery mine totalled482 936 tonnes from underground, 61 826 tonnes fromthe upper levels, 26 968 tonnes from the Southernopen cut, and 1299 tonnes from Allison’s. The majorityof the ore (64%) was extracted from J Lens, with mostof the remainder being extracted from B Lens.

Development activity included 4128 metres gearedtowards production and 639 metres for the DeepExploration Project. Operating waste totalled 63 400tonnes, with the Deep Exploration Project contributingabout another 44 440 tonnes.

Milling

A 1.4% increase in tonnage was treated, includingthe Rosebery and Hercules ores, bringing the total to649 657 tonnes assaying 9.8% Zn, 2.8% Pb, 0.42% Cu,84.5 g/t Ag and 1.39 g/t Au. Gold production fell to50% of the previous year with recovery remainingwell below expectations, coupled with deterioration inhead grade. While zinc recovery was maintained, theresults for copper improved but lead declined.

The mill produced and shipped 106 719 tonnes ofzinc concentrate (52.6% Zn), 19 646 tonnes of leadconcentrate (62.32% Pb, 1293 g/t Ag), 5553 tonnes ofcopper concentrate (23.5% Cu, 8.0% Pb, 2179 g/t Ag,65.3 g/t Au) and 113 kg doré (70% Au, 30% Ag).

Developments

Over $26 million was spent on capital developmentincluding the Deep Exploration Project, northernupcast shaft, primary crushing unit, and a number ofupgrades and replacements of undergroundequipment.

Ore reserves

Identified resources at June 1998 were:

Rosebery:Proved reserve —2.039 Mt @ 2.7% Pb, 8.3% Zn,

0.40 % Cu, 83 g/t Ag and 1.6 g/t Au

Probable reserve — 1.361 Mt @ 4.2% Pb, 11.4% Zn,0.43 % Cu, 155 g/t Ag and 2.6 g/t Au

28


Rosebery:

Measured resource — 2.334 Mt @ 3.0% Pb, 9.1% Zn,

0.47% Cu, 91 g/t Ag and 1.8 g/t Au

Indicated resource — 1.480 Mt @ 4.5% Pb, 12.5% Zn,

0.48% Cu, 169 g/t Ag and 2.8 g/t Au

Inferred resource — 7911 Mt @ 4.6% Pb, 13.2% Zn,

0.28% Cu, 148 g/t Ag and 2.1 g/t Au

South Hercules:

Inferred resource — 0.507 Mt @ 2.1% Pb, 4.0% Zn,

0.12% Cu, 163 g/t Ag and 3.3 g/t Au

Browns Tunnel:

Inferred resource — 0.161 Mt @ 3.0% Pb, 7.3% Zn,

0.70% Cu, 49 g/t Ag and 1.2 g/t Au

Exploration

The Deep Exploration Project continued, with over20 000 metres of underground deep drilling from thenew declines being developed the length of the mine.For the whole mine lease, diamond and RC drillingtotalled 74 850 metres, including resource infill andunderground and surface exploration.

Geological mapping and soil geochemistry wereconducted at the Jones Creek prospect, and extensivedrilling and down-hole geophysics were done to thenorth and south of the mine.


Rehabilitation around the South Rosebery tailingsdams, Primrose Hill and process areas has beencompleted. A new long-term rock disposal area hasbeen developed within the former Assay Creek. Therock will be sealed into cells to eliminate aciddrainage.

Employment

At the end of June, the mine had 90 staff employeesand 230 award employees.

Hercules Resources Pty Ltd

Mining

Following the start of the redevelopment of theHercules mine in August 1996, stable production fromthe operation was achieved as of November 1997. Oredelivered to Pasminco’s Rosebery mill totalled 59 844tonnes at 8.8% Zn, 2.0% Pb, 0.3% Cu, 34.9 g/t Ag and0.8 g/t Au.

Nearly 900 metres of hand-held development wasachieved, with production drilling totalling 16 777metres.

Ore reserves

The remaining inferred resource as at March 1998was 130 064 tonnes @ 11.0% Zn, 2.4% Pb, 0.57% Cu,40 g/t Ag and 1.06 g/t Au.

Exploration

In anticipation of an extension to the sub-leasearea, a surface and underground exploration programhas been proposed above 6 level. Some surfaceexploration was undertaken, with a drilling programexpected to begin in August 1998.

Copper

Copper Mines of Tasmania Pty Ltd

Mining

A total of 2 080 838 tonnes of ore at an averagegrade of 1.28% Cu was mined from underground atthe Mount Lyell mine, 95% by sub-level caving. Wasterock mined totalled 65 525 tonnes.

A front caving mining method was introducedduring the year in order to extract remnant ore fromthe caved area above the existing workings.

Development totalled 2134 metres. Declinedevelopment was halted due to the change to the frontcaving method.

Milling

Mill availability increased to 89.4%, processing allthe mined ore. Copper production increased to24 500 tonnes and gold production remained stable at14,034 ounces.

Developments

A scoping study examined the feasibility of blockcaving the extension of the Prince Lyell ore body atdepth. The study used orebody interpretations,geomechanical investigation and financial modellingto justify an initial deep diamond drilling program.

Ore reserves

Proved ore reserves at Prince Lyell totalled6.7 million tonnes @ 1.35% Cu. Probable reservestotalled 20.9 million tonnes @ 1.22% Cu, with the totalmeasured, indicated and inferred resources at MountLyell totalling 195 million tonnes @ 0.82% Cu.

Exploration

Sixty-nine holes were drilled on the mine lease for5067 metres, delineating 3.8 million tonnes of ore.Drilling, CSAMT and downhole EM surveys andgeological mapping were conducted at North Lyell,West Lyell and Cape Horn–Comstock.


CMT participated in the RiverWorks programwhich is trialling treatment options for the historicacid drainage that emanates from the lease. CMTtreated 9.8% (over three times the commitment) of theacid drainage pumped from the Prince Lyell mine byco-treatment with alkali tailings.

29


Revegetation work on the waste rock dumpinvolved direct seeding of locally occurring rainforestspecies, a first for the west coast. CMT received aHighly Commended in the Tasmanian LandcareAwards – BHP Landcare Research category for workundertaken in the bioremediation ofhydrocarbon-contaminated soil on the lease.

Employment

Employment at the end of the year totalled 229,comprising 82 employees and 147 contractors.

Gold

Beaconsfield Mine Joint Venture

The feasibility study was completed during thepast financial year and activities directly related tobringing the Beaconsfield gold mine back intoproduction after a period of 85 years commenced.

Mining

Mining of a decline from the 375 metre levelcommenced during the year, with the orebody beingintersected in May 1998. Stoping will commence latein 1998 in order to establish an ore stockpile of around20 000 tonnes by the time of mill commissioning,scheduled for mid-1999. Waste rock mined over thelast year was 88 641 tonnes.

Development

The Hart Shaft has been rehabilitated and firststage borehole dewatering systems, including a pumpstation on the 375 metre level, have been installed. Afresh air rise/second means of egress is currentlybeing installed, as well as civil constructions for orehoisting and conveying around the Hart Shaft.

Ore reserves

Reserves of ore are reported as:

0 probable: 1.44 million tonnes @ 16.9 g/t Au(780,000 oz);

0 indicated: 1.384 million tonnes @ 19.04 g/t Au(847,400 oz);

0 inferred: 0.545 million tonnes @ 13.12 g/t Au(229,900 oz).

Exploration

Exploration expenditure on adjacent ExplorationLicences totalled $325,000 for the year. Explorationwill continue with the aim of defining additionalresources.


The Development Plan and EnvironmentalManagement Plan for the Beaconsfield mine was

completed and submitted during the year, and alicence to operate has been issued.

Heritage initiatives

A cultural heritage assessment was completed inJune. The original Hathorn-Davey Cornish beampumps, originally installed in the Hart Shaft around1904, have been recovered. The pumps are in goodcondition and will be restored for display in the GrubbShaft Museum at Beaconsfield.

Employment

The joint venture workforce at June 30, includingcontractors, was 81.

Goldfields (Tasmania) Limited,Henty mine

Mining

During its second year of production the Hentymine increased ore production by 40% to102 000 tonnes at a grade of 23.9 g/t Au, 13% higherthan last year. Production was dominantly from silldrives and flat back stopes, but bench retreat stoping,introduced late in the year, will provide 60% of the orein the coming year.

Milling

The mill processed at 85% of its capacity, withplant recovery consistent at 98%. Gold productionincreased by 38% to 77,000 ounces of gold, with69,300 ounces shipped.

Developments

Capital development progressed 2100 metres,displacing 90 000 tonnes despite poor groundconditions. The intermediate decline was extended660 metres south in order to explore above Zone 96.The Zone 15 decline was advanced 280 metres.

Ore reserves

Proved reserves of ore totalled 24 000 tonnes@ 17.8 g/t Au, with a measured resource of 395 000tonnes @ 21.4 g/t Au and an indicated resource of144 000 tonnes @ 12.3 g/t Au.

Exploration

Henty announced that its exploration program tothe south of the existing Zone 96 resource hasdelineated targets at Zone 15 and at Mt Julia. The MtJulia program has included 16 000 metres of drillingwith over 30 intersections of mineralisation to date.


Henty’s continuing commitment to environmentalmanagement was recognised by the AustralianMinerals and Energy Environmental Foundation(AMEEF), with an award in the Environmental

30


Excellence in the Organisation category. Henty wasalso awarded the Fuji-Xerox Business Award byLandcare Australia.

Employment

Employment comprises 73 full-time employees andup to 100 contractors. Total manpower levels havebeen reduced by 20% since November 1997 as part ofa business improvement program.

William’s Hill Mining Group

Mining

Open cut production from the Numbers 1, 2 and 3Reefs at Linton, in northeast Tasmania, was 300 tonnesof ore assaying 2.0 g/t Au. Some gold was processedlocally in Tasmania with some being shipped asloaded carbon to West Australia for processing. About900 m3 was stripped as ore, with an equivalent volumeas waste.

Developments

A new reef in the No. 3 Reef area has been exposedand is being developed. Preparations are underway toopen up old underground access to 1 and 2 Reefs.

Exploration

Surface costeaning is being used to delineate reefsprior to open cutting.


Stripped topsoil is replaced and revegetated aftersurface works are completed.

Employment

The open cut at Linton requires two casualoperators and two staff.

Paraclete Resources Pty Ltd

Developments

Paraclete, together with Stonyfell Mining NL, hasspent $1.1 million in site works at the King River goldmine. Plant construction has been completed andwork on the tailings dam is proceeding.

Iron ore

Australian Bulk MineralsTasmanian Operations

Mining

A total of 3 743 000 tonnes of ore was mined fromthe Savage River open-cut iron ore mine. Waste rockstripped totalled 12 635 000 tonnes.

Production

Iron ore pellet production at Port Latta totalled820 841 tonnes at 65.99% Fe, with 74 159 tonnes of ironore concentrate at 67.5% Fe being produced.

Shipments of iron ore pellets from Port Lattatotalled 704 275 tonnes, with 32 299 tonnes of iron oreconcentrate being shipped.

Developments

Refurbishment of the Savage River and Port Lattafacilities was substantially completed and productionrestarted in November 1997. Work has continued sincethat date on the reline and re-commissioning of thePort Latta furnaces. A new 1.3 km overland conveyorwas constructed at Savage River and the maincrushing plant relocated as an in-pit crusher.

The capital expenditure invested in the SavageRiver–Port Latta redevelopment totalled $56 million in1997/98.

A feasibility study into pig iron/steel production atPort Latta was started.

Ore reserves

Proven reserves at 30 June totalled 67.782 milliontonnes @ 49.2% recoverable magnetite, with aprobable reserve of 13.515 million tonnes @ 45.0%recoverable magnetite.


Land within the former Savage River townshipwas remediated on behalf of the former Department ofEnvironment and Land Management. This workincluded a weed management program.

A Coastcare grant has been won to assist inremediating Port Latta. This project includes cleaning,revegetation, contaminated land assessment, weedcontrol, a botanical survey and other clean upactivities, including community tree planting daysduring the year.

Employment

The total workforce at June 30 was 385 contractorsand 11 direct employees.

Tasmania Mines Limited

Production

The Kara mine produced 55 038 tonnes ofmagnetite and 950 MTU of scheelite. Sales consisted of55 900 tonnes of magnetite and 3979 MTU of scheelite.

Capital expenditure at the mine totalled $621,624.

Ore reserves

Reserves of scheelite-bearing ore comprised:

0 proved reserve of 221 000 tonnes @ 0.51% WO3;

31


0 measured resource of 438 000 tonnes @ 0.51% WO3;

0 indicated resource of 254 000 tonnes @ 0.53% WO3;

0 inferred resource of 339 000 tonnes @ 0.92% WO3.

Reserves of non-scheelite bearing magnetite orecomprised:

0 proved reserve of 632 250 tonnes @ >30% Fe;

0 proved reserve of 187 250t @ <30% Fe

Employment

The average number of employees at the mine was 25.

Tin

Renison Limited

All areas of the mine achieved significantimprovements compared with the previous year, withore production, mill throughput, tin production andconcentrate grade all increasing. The mine returned toprofitable operation during the year.

Mining

At the Renison tin mine, 755 775 tonnes of ore weremined at an average grade of 1.75% Sn. The Rendeeporebodies contributed 32% of this figure. The ore wasmined by silling and benching.

A total of 2535.4 metres of development wascarried out.

Milling

Ore processed comprised 757 459 tonnes @ 1.74%Sn head grade to produce 16 231 tonnes of concentratecontaining 60.8% Sn for an average recovery of 75%.Ore grade and recovery improved as more amenable

ore types were accessed. Tin production for the yearwas the highest on record.

Shipments to South East Asia totalled 16 458 drymetric tonnes of concentrate averaging 60.2% Sn.

Ore reserves

Ore reserves as at January 1998 comprised:

0 proved 3.05 million tonnes @ 1.86% Sn;

0 probable 1.52 million tonnes @ 1.92% Sn.

The total measured resource (including orereserves) totalled 2.97 million tonnes @ 2.04% Sn, withan indicated resource of 2.54 million tonnes @ 1.74%Sn.

Developments

The refurbishment of the acid leach plant wascompleted with an immediate positive affect onconcentrate grade. The acid dilution plant wasreplaced with a new concentrate acid storage andhandling facility. Development continued in theRendeep area.


Leading edge research with CSIRO into tailingdam hydrology and geochemistry continued with thelonger-term objective of ensuring the sustainableprotection of receiving waters. A major program ofraising the environmental awareness of employeesmanifested itself in better performance in hydrocarbonand waste management, with a variety of wastesegregation and recycling initiatives adopted.

Employment

The total workforce at June 30 was 295, comprising224 employees and 71 contractors.

32


Non-metallic minerals

Limestone and dolomite

Beams Brothers Pty LtdProduction for the year comprised aglime and

dolomite fines (76 748 t), metallurgical limestone(30 138 t), other crushed stone (8909 t) and concreteproduction stone (2800 t).

Commissioning of a new ore-sizer crusher isunderway. Capital expenditure of $200,000 wasincurred on the tertiary crushing section, and on anew feeder and frame. Rehabilitation of dump areascontinued.

At least 10 years worth of reserves are available inthe present lease area.

Employment during the year averaged 24 persons.

Circular Head Dolomite andTrading Co. Pty Ltd

Production for the year totalled 49 021 tonnes ofagricultural dolomite and 9115 tonnes of dolomitescreenings.

Capital expenditure of $128,656 was committed tothe purchase of plant and machinery.

Employment totalled 12 people, with onecontractor on site at year end.

David Mitchell Limited (Mole Creek)The Mole Creek Lime Plant has reported a record

year of sales and production. Sales for the yearcomprised 30 710 tonnes of agricultural limestone,4182 tonnes of crushed limestone, 4531 tonnes ofchemical limestone and 41 965 tonnes of otherlimestone product.

Geological fieldwork, drilling, testing andcomputer modelling have been carried out to identifyand quantify reserves. A new ground limestone plantwas commissioned and the lime kiln productioncapacity was increased. The total capital cost of plantupgrade was $600,000. Employment increased from 27to 35 employees.

Silica flour

CominexSales of silica flour to the company’s principal

customer in Japan have resumed, following asuspension in 1996/97 as a result of disruption causedby the Kobe earthquake. The return of the Japanese tothe market is expected to lift mine sales to 7200 tonnesin 1998/99 and 9600 tonnes in 1999/2000. Anabnormal gravel sale arose as a result of upgrading ofinfrastructure at the nearby Savage River mine.

Production for the year totalled 5700 tonnes of highpurity silica flour, 3300 tonnes of gravel for concreteand 1500 tonnes of road base gravel.

Estimated reserves of high purity silica flour were90 000 tonnes proved and 1.6 million tonnes inferred.

The workforce strength at year end was eight, withcontractors employed as required.

Kaolin

Tonganah Clay MineProduction of kaolin clay totalled 5058 tonnes.

Sales and production were reduced early in thefinancial year when the Burnie paper mill no longerrequired product from Tonganah. There were nine toten full-time employees during the year with up toeight contractors employed at times working onrehabilitation.

Ceramics

K & D Bricks and PaversProduction of clay bricks and pavers continued at

the New Town plant.

NubrikClay, shale and sand, extracted from a number of

quarries, were processed into 29 300 tonnes of bricks

and pavers. Product was exported to overseas marketsin China, Taiwan, Japan and New Zealand for the firsttime in the business’ history.

Raw material reserves are deemed sufficient for atleast fifteen years.

There were 36 full time employees at year end.

33


Construction materials

Allan Summers Transport

Production of 545 m3 of concrete aggregate and3159 m3 of road aggregate was recorded fromMargetts quarry at Wynyard.

ML & P Barwick

Road construction material produced from thequarry at Clives Hill totalled 20 000 tonnes, with twopeople being employed. Reserves of 800 000 tonnesare present at this site.

Besser Tasmania Pty Ltd

A total of 20 140 tonnes of sand and gravel wasproduced from the quarry at Calder, and was sold tolocal users, including Besser’s Ulverstone productioncentre for bricks, blocks and paving.

Progressive rehabilitation of worked-out areascontinued.

Two persons were employed at Calder on open-cutmining and processing.

Boral Resources

Production from Boral quarries state-wideamounted to 820 000 tonnes of crushed rock andaggregates, including 200 000 tonnes supplied asarmour rock and fill for the Bass Highway relocationproject between Penguin and Howth.

Capital expenditure of $500,000 was incurred on anew excavator and amenities upgrade for theLaunceston quarry site.

Rehabilitation work continued on the Mt Nassaulimestone quarry.

Forty-four persons were employed.

Brambles Industrial Services

The total production from Brambles’ quarries was240 000 tonnes of road base, 200 000 tonnes ofaggregates and dust for use in concrete and sealingaggregate, and 30 000 tonnes of various rock fills.

Capital expenditure of $500,000 was spent onscreen upgrade, pug mill development andtransportable crushing plant upgrade.

Environmental audits of all locations wereconducted and action taken to address issues such asrevegetation and monitoring of water runoff.

Caroline Quarries P/L

Production from the quarry at Railton was21 543 tonnes of silica sand, 727 tonnes of generalsand, and 25 tonnes of concrete sand.

Rehabilitation work at the quarry continued, thesettling pond was enlarged, and rock lining of drainswas undertaken.

The quarry was operated by the owner and twoemployees.

CSR Construction Materials

CSR terminated its lease on the Mornington quarryon 29 April 1998. Production for the year was118 000 tonnes of crushed dolerite, mainly for roadconstruction.

Capital expenditure of $500,000 was incurred inquarry closure costs, including rehabilitation.

An extensive rehabilitation program, approved bythe former Department of Environment and LandManagement and MRT, was initiated.

Duggans Pty Ltd

A total of 45 262 tonnes of construction materialswere produced by Duggans Quarries, including9725 tonnes of aggregate, 4229 tonnes of sub-base, and18 584 tonnes scalps. Two full-time and one part-timeemployees were engaged at year end.

Hobart Blue Metal Industries

Production for the year comprised 223 000 tonnesof crushed rock, 7000 tonnes of gravel and 21 400tonnes of sand.

Tree planting was carried out at Leslie Vale, andfurther planting is planned for the Clarks sandoperation.

Nineteen employees and one contractor wereemployed.

Industrial Sands and Silica Pty Ltd

A total of 21 000 tonnes of base gravel and 5000tonnes of sand was produced by three employees.

Males Sand

Concreting sand, bedding sand and coarse sandwere produced from pits at South Arm.

Pioneer Concrete (Tasmania) Pty Ltd

Production of crushed dolerite from the FlagstaffGully quarry totalled 200 593 tonnes. This comprisedconcrete product (79 800 tonnes), road constructionmaterial (63 400 tonnes) and other product(57 393 tonnes).

Capital expenditure on a new crusher and newdust extractor totalled $242,000.

Progressive rehabilitation work continued. Tenemployees and three contractors were engaged inquarry operations.

34


Fuel minerals

The Cornwall Coal Mine No Liability

Production

Production from the various mines totalled456 336 tonnes of raw coal, with an additional58 000 tonnes of coal being purchased from theStanhope mine. Washery throughput of raw coaltotalled 535 749 tonnes for the production of378 809 tonnes of saleable coal. Approximately157 000 tonnes of reject material was deposited at theDuncan reject dump.

Sales for the year totalled 371 000 tonnes, withmarkets being re-established with several companies.

Duncan Colliery

This mine remains on care and maintenance.

Blackwood Colliery

Production has come from continued easterlyretreat along the No. 2 conveyor. Panels weredeveloped and extracted in turn to the north andsouth to recover coal between faults and from theboundary pillar to the old Mt Nicholas workings.

Headings in the 1A section were rehabilitated forcontinued development, with 376 metres beingadvanced by the close of the year. Conditions havebeen generally adverse, with water being encounteredfrom the seam and from roof cracks, and some minorfaulting occurring. A mudstone band wasencountered near the top of the seam, thickening to600 mm at which point mining continued beneath theband. The thickness of the material between theworking roof and the sandstone has varied up to2.1 metres. Fracturing has seriously affecting boltingcosts and productivity.

Blackwood No. 3

Workings have been re-established in the CornwallSeam below the Blackwood No. 1 mine. The intakeportal has been established and the surface conveyorerected. The return roadway is being driven bycleaning up and extending a previously formedheading. By the end of the year, development wasadvanced about 100 metres and still in poor roofconditions.

Huntsman No. 2 open cut

Mining has been in a down-thrown block wheresurface contours have been higher, resulting in up to35 metres of cover for 2.1–2.2 metres of seam. The

block is 75% extracted. Rehabilitation of earlier minedareas is progressing.

Capital Expenditure

A total of $349,000 was spent on capital equipmentduring the year, mainly in developing the new portalat the Blackwood Colliery and on plant improvementsat the Fingal washery.

Safety

There were no lost time injuries during the year,

Rehabilitation

Revegetation growth at Huntsman No. 1 isprogressing well and progressive rehabilitationcontinues at Huntsman No. 2. At Duncan the fine coalstockpile has been reduced and No. 1 and reject damsare being progressively covered with coarse rejectmaterial.

Employment

A total of 85 people was engaged in the operation.Of 66 employees, 43 work underground whilenineteen contractors were employed in the open cutoperation and coal transport.

Merrywood Coal Company Pty Ltd

Production

Total raw coal production for the year was75 624 tonnes, with washed coal production totalling52 180 tonnes. At the Stanhope Colliery 953 000 cubicmetres of waste was moved to achieve the requiredproduction. Development included an access road,crushing plant and amenities improvements.Exploration drilling carried out totalled 3500 metres.Four hectares of rehabilitation work was carried out.

Additional rehabilitation was carried out at theMerrywood open-cut mine.

Employment

Eighteen people were employed in the operation,including transport.

Capital Expenditure

A total of $35,000 was expended on improvementsto the crushing plant and for its connection to the HECgrid.

35


Mineral Processing Operations

Comalco Aluminium (Bell Bay) Limited

Production of aluminium for the 1997 calendaryear totalled 138 000 tonnes of hot metal. Employmentat the Bell Bay operation totalled 683, with anadditional 78 contractors engaged in the operation.

Capital expenditure during 1997 totalled$43,500,000.

In September 1997 the smelter successfullycommissioned a fume scrubbing system. Dryscrubbing provides the smelter with the world’s bestenvironmental practice resulting in 90% reduction influoride gas emission and negligible fluorideparticulate emission. This is recognised as the mosttechnologically advanced system available to thealuminium industry. At its peak, the project directlyemployed a construction workforce of over 200people. It is estimated that more than 30% of the totalcapital expenditure (approximately $14,000,000) wasspent directly in Tasmania.

During the latter half of 1997 the smelter embarkedon a performance enhancement program, whichresulted in employees contributing thousands of ideasto reduce cost and improve the performance of thebusiness.

Goliath Portland CementCompany Limited

Production

Production at the Railton mill totalled one milliontonnes of clinker and 1.1 million tonnes of cement,with 985 000 tonnes of product being shipped to NSWand Victoria on MV Goliath.

Raw material consumption comprised 1.5 milliontonnes of limestone, 70 000 tonnes of clay,22 000 tonnes of magnetite, 25 000 tonnes of silica,50 000 tonnes of gypsum and 156 000 tonnes of coal.

Employment

A total of 189 people, including three contractors,was employed in the operation.

Capital expenditure

A total of $14,800,000 was expended during theyear. Major projects were the installation andcommissioning of a 1000 tonne per hour twin rotorhammer crusher and trunk conveying system from thenew quarry to the plant, and the erection of a300 metre × 55 metre building to enclose crushedlimestone pre-blending beds for reducing dustemissions.

Development and Rehabilitation

Over 500 000 tonnes of overburden were removedas part of the development program at the quarry.

Rehabilitation work included covering the southernoverburden dump with topsoil and spray seeding,repairs to a landslip in the old quarry, installation ofdrainage lines, and widening of the settling pondsspillway.


In addition to development projects the triennialreview of the environmental management plan wasdrafted and the rehabilitation plan was completed. Anenvironmental management system and a greenhouseenergy management system are being developed.

Impact Fertilisers Pty Ltd

Production

Production of single superphosphate totalledalmost 186 000 tonnes, of which 73 000 tonnes wasshipped to mainland destinations.

Raw material requirements were 114 000 tonnes ofimported phosphate rock and 70 000 tonnes ofsulphuric acid from the Pasminco Hobart Smelter.

Employment

Sixty-nine people, including six contractors, wereemployed in the operation with an additional 21people being employed at depots.

Capital works

A maintenance store and mobile workshop wereconstructed and improvements were made to depotsat Kilafaddy and Smithton.

Environmental control

Road works and landscaping were carried out todecrease dust emissions, improvements were made todiesel storage, and designs have been done for a rockphosphate storage facility.

Tasmanian Electro MetallurgicalCompany Pty Ltd

Production

Production from the Bell Bay smelter for 1997/98totalled 95 900 tonnes of ferromanganese,89 400 tonnes of silicomanganese, 5600 tonnes of finesand 270 900 tonnes of sinter. Product sales for the yeartotalled 107 100 tonnes of ferromanganese,101 900 tonnes of silicomanganese, 10 800 tonnes offines and 2900 tonnes of sinter.

Employment

Total employed in the operation was 286 people,including eleven contractors.

36


Capital expenditure

Capital expenditure for the year totalled $8,700,000.Major projects were the completion of the upgradingand relining of No. 3 furnace, the sinter plant wastegas ‘main’ replacement and fan modification, andupgrading of the security system.

Environmental control

Two wastewater recycling initiatives were carriedout, with utilisation of contaminated water fromfurnace off gas scrubbing and storm water recyclingbeing introduced. A sustainable quantum reduction indust emissions was achieved through improvementsof the electrostatic precipitator at the sinter plant andovercoming problems with pyrophoric dust collectionat No. 1, 2 and 3 furnaces.

A slag metal separation plant, including a jig plant,was commissioned to recycle valuable material andprovide sized slag for sale.

Vegetation work included two separate plantingsof TEMCO propagated species back to their sourceareas through the Rare and Endangered SpeciesAlliance with the National Parks and Wildlife Service.


The University of Tasmania study of DeceitfulCove continues. TEMCO is approaching fullcompliance with BHP Minerals/CopperEnvironmental Management System. This complieswith ISO 14001 and the Mineral Industry Code forEnvironmental Management. New environmentalmanagement plans were drafted for the smelter siteand the quarry at Beaconsfield.

Pasminco Australia Limited,Pasminco Hobart Smelter

Production

A total of 197 000 tonnes of zinc metal and alloywas produced from zinc concentrate sourced mainlyfrom the Broken Hill, Rosebery and Hellyer mines.

Major by-products produced from the treatmentwere sulphuric acid, secondary leach residue, coppersulphate and cadmium.

Zinc and alloy production was adversely affectedby the introduction of a process change from jarositeto paragoethite production. The over-ridingproduction emphasis for 1998/99 will be uponcompleting the successful implementation of theparagoethite circuit.

Employment

A total of 621 people were engaged at the Risdonplant, with an additional 235 contractors beingengaged in various tasks.

Capital expenditure

In excess of $12 million was spent on capital worksduring the year, with additional major expenditure on

a demolition program for decommissioned plant. Themajor projects included rehabilitation of the jarositestorage area, upgrade of wharf cranes, foreshore stackreplacement, paragoethite drying plant and processplant, gypsum production, office automation andcontaminated water pond upgrade.

Major projects planned for 1998/99 include acidtank bunding, foreshore scrubber replacement,enhancement of the paragoethite process, electrolysisbasement improvements, and EZDA production andcasting ventilation improvements.

Environment and community

Environmental milestones included the update ofthe site Environmental Management Plan,commencement of a program of environmentaleducation, and reduction of paragoethite drierbag-house emissions.

Capital expenditure on environmentalimprovements included extension of the contaminatedwater pond, the commencement of the jarositestockpile rehabilitation, and demolition works as partof the site improvement program.

There was one significant environmental incidentfor the year, a release of sulphur trioxide in July 1997.This promoted a HAZOP study that resulted in aremedial program.

Environmental management initiatives in 1998/99will include site contamination and rehabilitationinvestigations, development of waste and materialsmanagement strategies, and improvements to theelectrolytic division basement.

The environmental awareness program willcontinue, with specific departmental inductionprograms and an environmental module for siteleaders being developed. The site environmentalmonitoring program will be reviewed andre-focussed, in conjunction with Department ofPrimary Industries, Water and Environment.

Successful community relations initiatives from1997/98 will continue, including meetings withcommunity and consultative groups.

Occupational Health and Safety

Safety performance improved, with lost-timeaccidents falling to four during the year. No accidentswere recorded for a period of over 200 days. Initiativesfor 1998/99 include a special emphasis onhousekeeping, and reviews of emergencypreparedness procedures and specialised workpermits.

Tioxide Australia Pty Ltd

Operations at the Heybridge site ceased in 1996.Final plant demolition and rehabilitation of residuedams were completed during the financial year.

37


Value of the Tasmanian Mineral Industry

Year ended 30 June 1997 30 June 1998Commodity Unit Total Quantity Total Quantity

METALLIC MINERALSCadmium (tonne) … … … … … … … … 0 0Cobalt oxide (tonne) … … … … … … … … 0 0Copper (assayed) (tonne) … … … … … … … … 24 759 27 698Gold (assayed) (kilogram) … … … … … … … … 2 435 3 256Iron ore pellets (tonne) … … … … … … … … 809 359 1 074 655Iron (in magnetite) (tonne) … … … … … … … … 39 123 55 038Lead (assayed) (tonne) … … … … … … … … 65 274 57 041Molybdenum (tonne) … … … … … … … … 0 0Pyrite (tonne) … … … … … … … … 0 0Silicon (metallic or as alloy) (tonne) … … … … … … … … 0 0Silver (assayed) (kilogram) … … … … … … … … 165 811 138 764Tin (tonne) … … … … … … … … 8 732 9 868Tungsten as tungstic oxide (tonne) … … … … … … … … 2 5Zinc (assayed) (tonne) … … … … … … … … 186 406 183 198

VALUE OF METALLIC MINERALS $460 907 344 $516 367 280

NON-METALLIC AND FUEL MINERALSClay –

Cement (tonne) … … … … … … … … 102 976 44 735Brick (tonne) … … … … … … … … 38 831 26 155Other (tonne) … … … … … … … … 22 649 95 579Kaolin (tonne) … … … … … … … … 31 251 6 742

Dolomite (tonne) … … … … … … … … 14 177 6 183Limestone –

Agricultural (tonne) … … … … … … … … 106 246 108 007Cement (tonne) … … … … … … … … 1 525 764 1 149 310Chemical and metallurgical (tonne) … … … … … … … … 33 296 34 886Other (tonne) … … … … … … … … 51 660 66 230

Silica (glass and other) (tonne) … … … … … … … … 157 945 127 044Sulphuric acid (mono tonne) … … … … … … … … 395 820 270 660Coal (run of mine) (tonne) … … … … … … … … 545 820 566 720Coal (washed) (tonne) … … … … … … … … 297 274 380 300Peat (m3) … … … … … … … … 2 192 5 868

VALUE OF NON-METALLIC AND FUEL MINERALS $48 451 637 $45 818 650

CONSTRUCTION MATERIALSBuilding stone –

Freestone (tonne) … … … … … … … … 1 520 957Granite (tonne) … … … … … … … … 170 0Other (tonne) … … … … … … … … 1 618 1 450Sandstone (tonne) … … … … … … … … 587 136

Crushed and broken stone –Basalt (tonne) … … … … … … … … 792 184 805 964Dolerite (tonne) … … … … … … … … 1 244 301 872 809Limestone (tonne) … … … … … … … … 49 142 20 606Sandstone (tonne) … … … … … … … … 311 102Other (tonne) … … … … … … … … 177 518 144 184

Gravel (tonne) … … … … … … … … 81 096 73 510Sand (tonne) … … … … … … … … 381 413 346 369Other road materials (tonne) … … … … … … … … 1 574 217 1 426 971

VALUE OF CONSTRUCTION MATERIALS $27 796 967 $22 280 239

TOTAL VALUE WITH AUSTRALIAN METAL PRICES $537 155 948 $584 466 169

METALLURGICAL PRODUCTION FROM OTHER THAN TASMANIAN ORESAluminium )Aluminium sulphate )Cadmium )Cobalt oxide )Ferro-manganese )Ferro-silicon ) $706 686 390 $649 426 640Silico-manganese )Sinter )Superphosphate )Titanium dioxide )Zinc )

VALUE OF MINING AND METALLURGICAL PRODUCTION $1 243 842 338 $1 233 892 809

REPORTED AVERAGE NUMBER OF EMPLOYEES1 4060 3935

(1) Not all operators report full details

38


ANNUAL REPORT

Rehabilitation of Mining Lands Trust Fund

The Rehabilitation of Mining Lands Trust Fund(RMLTF) was established in 1997 following theproclamation of the Mineral Resources Development Act1995. Abandoned mining lands for which no person ororganisation can now be held responsible are thetarget of this trust fund. The Trust draws its fundsfrom a negotiated increase in the royalties paid by themining and quarrying industries.

MRT has written a strategy which addresses theissues surrounding the establishment of the fund andadministering committee, the aims of rehabilitation,the selection of sites, and the priorities forrehabilitation. The strategy outlines the processes tobe followed when developing a rehabilitation planand the procedures to be followed for theappointment of consultants and the awarding oftenders.

During the past financial year work was completedin northeast Tasmania in the old tin mining areasaround Gladstone and at Rossarden. A briefdescription of the works completed is outlined below.

Rehabilitation of abandoned tin

mines, northeast Tasmania

The Committee approved the appointment ofSEMF Holdings Pty Ltd (SEMF) to prepare arehabilitation concept plan for the Monarch, Star Hilland Endurance mines in northeast Tasmania. SEMFwas also engaged to prepare tender documents, assistin the selection of tenders, and to project manage thework in consultation with MRT.

SEMF produced reports on:

0 rehabilitation concept plans;

0 rehabilitation designs and costings;

0 inspection of dams;

0 water quality assessment;

0 met acid generation testing.

Rehabilitation work completed included:

0 gully erosion earthworks at the Endurance mine;

0 stabilisation and rehabilitation of a major gully atthe Monarch mine;

0 recontouring and seeding at the Star Hill mine;

0 construction of a trial biological filter at theMonarch mine;

0 repairs to Blue Lake dam wall and spillway;

0 repairs to dam spillway at Star Hill.

A total of $299 567 was spent on these projects.

The majority of the work was carried out byStornoway Gravel Constructions Pty Ltd with SEMFHoldings Pty Ltd as consultants. The environmentalperformance of both companies and MRT wasrecognised by winning the Case Earth Award for acontract under $1,000,000 in value. The Earth Awardsare awarded annually by the Civil ContractorsFederation in conjunction with The Earthmover andCivil Contractor Magazine and are sponsored by CaseCorporation Pty Ltd. The awards recognise thoseorganisations which achieve innovation and bestpractice in the field of environmental management ofcivil construction projects. Credit in the awards wasgiven to Stornoway for their environmentalmanagement system which is accredited to ISO 14 000.This is the first time that Tasmanian organisationshave received awards in the national competition.

At Rossarden revegetation of tailings dams wasstill in progress during July. The costs of $77,492 werelargely payments carried over from work completedduring 1997/98.

The water quality assessment report and acidgenerating testing has shown that the large expanse oftailings at the Endurance mine is affecting the runoffto the Ringarooma River system. The Committee hastherefore approved further earthworks at theEndurance site to start to address the acid drainageproblem and to stabilise gully erosion. Other workwill include a joint project with the Scottsdale HighSchool involving revegetation at the Monarch mine.

Zeehan area

Investigations were carried out in the Zeehan areaby honours students at the University of Tasmania.This work, costing $6,400, involved collecting data inpreparation for a rehabilitation program in 1998/99.

Minor programs included capping an accessibleshaft near Zeehan at the former Montana mine($5,500) and removing an unsafe structure at Waratahadjacent to the historic ‘calciner’ ($6,400).

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