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Major Mineral Resources Projects

Mineral extraction, mineral processing and mineral manufacturing together form the region's largest industry sector. In 2007/08 mineral extraction and mineral processing was worth a total value of $2.3 billion.

Minineral extraction in the South West includes the extraction of coal, mineral sands, spodumene (a lithium-containing mineral), tantalum and tin.

Mineral processing is focused towards the production of alumina from bauxite and synthetic rutile from ilmenite. 

Mineral manufacturing includes the production of titanium dioxide pigment and silicon.

Coal, alumina and mineral sands are the largest contributors to the region's value of mineral production.

Mining statistics

Coal

The South West produces all of Western Australia's coal which in 2007/08 was valued at $274.9 million.

There are two coal producers, Wesfarmers Premier Coal and Griffin Coal, currently mining in the Collie area. Mining takes place at the Premier, Muja, and Ewington mine sites, producing all the State's coal supplies, which are sold on the domestic market.

Western Power uses the majority of coal for electricity generation with the remainder used by industry in the production of alumina, mineral sands, cement and nickel.

Mineral Sands

The mineral sands industry is an integrated mining, processing and manufacturing sector, with three principal areas of operation:

  • mining and separation of ilmenite, zircon, natural rutile and monazite;
  • secondary processing of minerals to upgraded ilmenite (synthetic rutile) and refined zircon products; and
  • the manufacture of titanium dioxide pigment.

In 2007/08 the mining and processing of mineral sands in the South West Region was valued at $196 million. The mineral sands extracted is largely titanium based and includes ilmenite, upgraded ilmenite or synthetic rutile, leucoxene and rutile. Zircon is also recovered as a co-product from the titanium mineral mining operations.

Millennium Inorganic Chemicals manufactures titanium dioxide pigment at Kemerton Industrial Park, 17 kilometres north-east of Bunbury. In 2004/05 85,000 tonnes of pigment was produced at a value of approximately $300 million. The titanium dioxide pigment is then used in the production of paints, plastics, paper, rubber, printing inks, cosmetics and pharmaceuticals.

Bemax Cable Sands is currently considering a $60 million mining project at Jangardup South, located 54 kilometres south of Nannup. Environmental approval is still required before construction of the Jangardup South mine can proceed.

Alumina

The Worsley Alumina Refinery situated near Collie processes bauxite mined in the Shire of Boddington. Alumina production is currently at record levels with a production value of $1,652 billion in 2007/08.

At a cost of $50 million Worsley completed construction of its own wharf ship loading facilities and ancillary conveyor belts and tanks at the Bunbury Port. This new wharf is catering for the increasing alumina production from its refinery at Worsley.

In addition, just north of the South West Region, Alcoa World Alumina has its Wagerup Refinery. Together the two refineries form one of the world's largest alumina producing hubs.

Spodumene, Tin and Tantalum

The combined total of spodumene, tantalum and tin production was worth $169.4 million in 2007/08. A significant portion of world demand for spodumene is met from the Greenbushes mine. Spodumene is used as feedstock for the production of lithium carbonate and various other lithium chemical products. The Greenbushes mine has the world's largest tantalum deposit.

Silica Sand

Kemerton Silica Sand is mining silica sand just noth of the Kemerton Industrial Park. The bulk of the sand is suitable for the glass industry, and the first shipment was despatched in 1997. In 2004/05, 334,532 tonnes of silica sand were exported.

Silicon

Since 1989, Simcoa has manufactured high-grade silicon, at the Kemerton Industrial Park, using a high temperature smelting process. Silicon is used in the production of aluminium alloys, silicones and solar grade silicon wafers. In 2005, approximately 32,000 tonnes of premium grade silicon was produced at an estimated value of $75 million.