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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (11006)	11/29/2007 10:43:32 AM
From: LoneClone	Read Replies (1) \| Respond to of 194504

BHP executive sees more high grade mines ahead mineweb.com A leading BHP Billiton executive told explorers, miners, bureaucrats and politicians in Adelaide tonight that less than two decades ago the total value of the world’s minerals industry was below the current market capitalisation of BHP Billiton. How things have changed. Author: Ross Louthean Posted: Thursday , 29 Nov 2007 PERTH - In presenting the annual Essington Lewis Memorial Speech in Adelaide tonight, Graeme Hunt, President of BHP Billiton's Uranium Customer Sector Group, said that the market value of the world minerals industry was now about $US1,300 billion. In 1990 it was $US150 B, well below the current valuation of BHP Billiton (which is making headlines with its proposed $US140 B takeover bid for another leading global mining house Rio Tinto plc). The address, in honour of one of the original BHP's pioneering leaders, pointed out that a factor behind Australia's advance as a mining nation was that it was seen as being free of sovereign risk. The growth of the industry since the post-war era has followed decisions by governments the world over to open their countries to exploration and development. "They have done so with the understanding that mining can bring rapid integration into the world economy, providing economic and social benefits for their peoples," Hunt said. "The consequence is that more high grade orebodies are going to be discovered and that there is now no escape for a mining enterprise from the highly competitive and unsentimental world market in which it must operate. "It is the understandable tendency of governments to compete with each other to attract resource development. "As they do, they need to understand the contemporary global mining industry in nursing their own ambitions. The industry cannot change the location of an orebody. Hunt said access to human capital and infrastructure -- particularly in remote locations -- requires practical thinking so that projects are not faced with unnecessary delays, unmanageable human resource issues or unsustainable costs. A company whose core strength is mining needs to have the option of selling product before it is refined if, in its judgment, that is the best way to develop a project on budget, on time and within its demonstrated capabilities. Hunt said the Australian minerals sector now contributes 8% of the country's GDP and has been running at about a quarter of total national capital investment. Last financial year the industry contributed $A91 B ($US80.4 B) in export earnings - 40% of Australia's free trade. "In South Australia alone, you have known for a long time that you have more uranium than anywhere else. (Olympic Dam reputedly holds 40% of global uranium resources and reserves). But now in copper, Olympic Dam is the world's fourth largest resource, and in gold, it has moved up to fifth. "Geologists continue to say that there are more Olympic Dam type ore bodies awaiting discovery," Hunt said. "Since entering the uranium business just over two years ago (with the takeover of WMC Resources), BHP Billiton has sought to actively work with other producers and with other participants in the nuclear cycle to develop a program of action to ensure that uranium and its by products are managed in a safe, environmentally responsible, economical and socially acceptable manner."