Copper Mining in Australia - Case Study Example

Introduction Coming after Chile, USA, and Indonesia in that order, Australia is fourth in copper production in the western world. In the year 2003 Australia alone produced 869,000 tons of copper concentration. Though mined from somewhat a small number of mines in Australia, copper mining is well distributed there with South Australia’s Olympic dam and Queensland’s Mount Isa Mines being the chief producers. Additionally, there are quite a number of other important mine operations areas of Copper in Australia: Ernest Henry, New South Wales at Cadia-Ridgeway and Northparkes, Western Australia at Golden Grove, and Mount Gordon in Queensland among others. Coming third after chile and USA, Australia has 6 per cent of total global resources. Given the impressive significance of this mineral (Copper), this paper is designed to give a deep analysis concerning it. The paper will cover in depth the significance of the mineral and give a deep understanding of the mineral by covering entirely all the necessary areas of the mineral with a particular focus on Olympic Dam which is its primary producer in South Australia. It will also cover copper’s mining, manufacturing and processing process and elaborate further on its market and distribution. Overview World Mining Corporation (WMC) is Australia’s leading copper producer, with Olympic Dam Mine dominating the production. As for the other copper producers in Australia, copper is produced as a co product of Gold mining operations. In the year 2003, Olympic Dam Mine alone produced 160,080 of the 869,000 tons of copper produced in Australia. It is ranked 8th largest ore reservoir in the world and its reserves approximated at 566Mt grading at 2 per cent copper, o.6 per cent Uranium, and o.7 per cent Gold. WMC Resources Ltd in May 2004 affirmed a 50 million pound likelihood study preference purposed to expand the mine and develop a preferred plan for its survival by the year 2006. Initial assessments have affirmed that Olympic Dam has the capacity to produce up to 350,000 tons of copper per year if its underground mining is expanded and effectively utilized. Nifty copper mine is primarily operated by Straits Resources Ltd, a company that purchased it from the main operator (WMC) at 47 million dollars. New South Wales’s (NSW) Girilambone Copper mine is also operated by Straits (Carne 1908). In this site, the company holds A60% interest and still it is the operator with Nord Pacific possessing the other 40% interest. More to the point, Osborn Copper-gold mine is operated by Placer Dome Ltd. This mine is situated in Northeastern Australia in the state of Queensland. Also, the Ernest Henry Copper Mine (located in Queensland) is owned by a joint operation between Pasminco and Mount Isa Mines (MIM). This mine also located in Queensland is thought to have the capacity of producing up to 95,000 tons of copper per year at full production (Derrington 1899). However, Pasminco has a greater interest in mining Lead and Zinc rather than Copper and thus has an intention to sell 49% of its interest in Copper to Ernest Henry and depart to focus on its core business. Furthermore, to show how much trust and attention has been given to Copper mining, there was a decision made and announced concerning Tritton Copper Project t. this is located in New South Wales around Girilambone and the intention to develop it is with Tritton Resources. The operation is thought to mine 660,000 tons of copper per year at the begging and this is expected to rise up to 900,000 tons per year in the 5th year and over in the following years. Here Tritton Resources will primarily depend on underground methods of mining but a small open pit will also be used to supply some ore. However, it needs a huge investment for the project development and this is estimated at 38.5 million dollars (Derrington 1899). Copper mining methodology Birla Nifty performs underground mining by the use of large capacity electro-hydraulic equipments or diesel. Of late, underground mining is performed by the use of backfill method or open stopping methods. This method involves drilling and blasting stoops into the mineral deposits. Concentration and refining follow afterwards as will be elaborated in below. Copper extraction This points to the techniques employed in obtaining copper from its ores. It involves a series of physical processes, chemical processes, and electrochemical processes. However, the methods vary from one place to another depending on source of the ore in terms of depth and geographical composition of the area, local environmental regulations, and more other factors (Johnson and Howitt 2011). Just like in any other mining process, for copper to be extracted, the ore containing it must first be concentrated. For this to be achieved, the ore is crushed and resorted for the sake of sulfides conversion to oxides from which matte is produced after smelting the oxides. It then undergoes a series of processes directed to refine and the process ends with electrolysis. Reclaiming of the byproducts is then recommended for the sake of keeping the environment safe and for economic reasons (Bridge 2001). Sulfuric acid for instance, is product of sulfur dioxide and is used in the extraction process. Concentration Usually, copper ores contain a greater percentage of unwanted rock minerals including unvalued silicate minerals and other oxide minerals, with only a small percentage of the desired copper metal which is contained within precious ore minerals. Consequently, it seeks intellectual and credible methods and techniques to extract copper from these rock minerals. Note that, in the 21st c, the mean grade for copper ores is reported at below 0.6 percent copper, and below 2 percent of the entire ore rock volume. Accurate grinding is the opening step of typically all processes in metallurgical treatment circuit which involves crushing the rock to produce minute particles that consist individual mineral phases. In order to remove gangue, the particles are separated and the process of physical liberation follows afterwards to extract the mineral ore from the rock. However, this process depends on the state of the copper ores, that is, whether they are sulfide ores or oxides. For oxide ores, extractors prefer using the hydrometallurgical process of liberation as mentioned above. On the other side, both primary and secondary, and float floatation methods are used for sulfide ores to physically separate them from gangue. Copper marketing After mining, the copper concentrates are sold to smelters and refiners. Refining and treatment of this commodity is the done by the smelters and the refiners, who the impose charges for the services through refining charges (RCs) done in cents per pound treated and through treatment charges (TCs) done in US dollar per ton. The prices are set every year by the primary Japanese smelters. The distinctive deal for copper miners is dominated against the TC-RCs subtracted from the London Metal Exchange value, and any relevant fines or tributes. Copper concentrates are sold and bought through spot contracts or under long term contracts. Between the beginning of the year 2005 and towards the end of 2006, the world prices of copper almost trebled, and this marked the most remarkable boom in product markets in a number of years. This is attributed to the demand trends over the commodity in the world, which has been observed to be growing much faster than the production process and the discovery rate of new sites for copper mining to supplement the demand. This was also experienced in the year 2004 where the consumption rate of copper surpassed the production and supply rate by 843,000 tons. It is reported by the Yale University geological studies that new discoveries of copper have aided in raising global reserves by 0.63& annually as from 1925. Nevertheless, the study also reveals that the final demand has also rocketed at 3.3% annually, which typically suggests that commodity is still under pressure. Presently, demand is booming in India, China and other upcoming market economies. Studies show that in the recent years, copper stocks have faced a serious decline and its scarcity has provoked its prices to rise beyond expectations as traders out-bid each other (Bridge 2001). The significance of copper As a result of copper being flexible and ductile, its demand is extensive particularly in industries. Like many other precious metals, the demand for copper is as a result of its importance as a raw material or final component in industrial production of various products. The construction industry accounts for almost 50 percent of copper products, and the electrical sector for around 17 percent. This commodity (copper) is also highly needed for its extensive use in transport industries and also in light and heavy engineering industries. Copper has been of great significance and has a high array for potential and credible industrial uses: from its use in integrated circuit to copper plumbing, from copper wire to its value as anticorrosive material coating particularly in shipbuilding et cetera. The automobile industry is a typical example that shows where the demand for this commodity comes from and it clearly expresses the importance of copper. For instance, the average car which is of course from the automobile industry comprises 27.6 kg of copper alone. This figure could rise further in the case with a hybrid car which encompasses a number of electric motors in conjunction with a combustion engine. Note that, typical electric hybrid cars are likely to utilize almost twice the existing usage of the commodity in additional windings cabling for electric motors. Economic importance of copper Copper is relatively less expensive and is a highly plentiful commodity with a number of credibly useful properties. For instance, copper is collusive resistant and is effective in both heat and electricity conduction. This makes copper naturally and prominently reliable hence becoming center piece of the industrial economy. Copper is utilized within every aspect of society where advances are being made towards realizing a more stable and balanced “state of the art.” It is highly linked with all kinds of today’s developing and growing world. Talk of the telecommunication sector, technological exploration, construction projects, medical research, and infrastructure renewal just to mention a few, all have a substantial degree of dependence on copper products. It is reported that in the 20thc, the demand for refined copper for the industrial sector alone rose to 19,000,000 metric tons from 500,000 metric tons. Copper is the most reliable building block in the expanding regions in terms of infrastructure. Environmental impacts of copper mining Generally, the impacts imposed to the environment mining activities include loss of biodiversity, formation on sinkholes, soil erosion, and contamination of ground and surface water by the used chemicals. Mining involves creation of space for created debris and soil and this may definitely lead to logging and forest clearing where the mine sites exist in forests (Johnson & Howitt 2011). The leakage chemicals may also in addition to environmental damage affect the health of the surrounding communities and local population. Some mining methods may need to be improved of evicted from operation and employ the new technology for the sake of the health of the environment and that of local communities. Copper mining in Britannia Mine of British Columbia is a classical example of heavy mental contamination of the environment resulting from water run-off. Conclusion Evidently, copper has generally played a considerable responsibility in the industrial sector, economic, and in social life. This commodity is of high demand particularly in the automobile industry. It is needed in infrastructural development and in telecommunication advances. The electrical properties of this commodity are particularly utilized in copper wires and electromagnetic devices. Due to its excellent conductivity, it is increasingly being featured in printed circuit boards and in integrated circuits. Further, copper is highly valued in high demand in the architecture industry due to its waterproof nature. Since ancient times, it has been used in roofing material. Copper has also played a significant role in economic development of many countries especially where it is being exploited. A classic example is in Utah, USA, Chile, and Australia. It is a foreign exchange earner for the lucky countries that has the copper mines and has had the opportunity to exploit them. However, great care should be taken with regard to environmental pollution and destruction emanating from mining processes. It has been proved that the chemical used in mining may prove detrimental not only to the environment but also to the local communities. References Johnson, B. & Howitt, R. (2011). Indigenous geographies I: Mere resource conflicts? The complesities in indigenous land and environmental claims. Progress in Human Geography 36 (2). 1-12 Derrington, H. (1899). Record of the mines of South Australia. Adelaide: Bristow Press. Bridge, G. (2001). Resource Triumphalism: postindustrial narratives of primary commodity production. Environment and planning A. 33, 2149-2173. Sengupta, M. (1993). Environmental impacts of mining: monitoring, restoration and control. Boca Raton: Lewis publisher. Redmann, E. & Ripley, A. (1996). 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